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Sample Essay on The Economies of Europe - Macroeconomics

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Sample Essay on The Economies of Europe - Macroeconomics

The article is a critical analysis on the economic growth in 19 European countries categorized as the currency area, countries within the Euro area and outer Euro area. The article figuratively adopts four pointers in giving an overviewperformance of the European markets in the past three years. First, the author examines how Euro currency has fared compared to other areas.The article depicts a region is still recovering from the European crisis and countries within the Euro area seem to stabilize as compared to other countries using their own currencies.

Second, the author examines Gross Domestic Product which as a direct influence on the employmentmarket, the figures indicates that the Euro area is struggling with higher rates of unemployment and per capita income as compared to floating currency areas such as Britain and countries in Eastern Europe. There is glimpse of hope in floating currency areas because the rates of youth employment seem to be on the rise as compared to other areas. Third, interestinglydebt seems to stabilize in the European countries selected and countries with low Gross Domestic Product and per capita income seem to struggle as compared to major economies in the Euro currency region. Lastly, seemingly there is an upsurge in economic growth and noticeably Romania whose currency is pegged on the Euro, the country is performing better across the four parameters selected by the author. The economic performance in the Euro region seem to be affected by the departure of Britain and new economic policies under President Donald Trump.

One of the parameter which the author has successfully captured is the current rate of economic growth in the region. Although the Euro market has been declining and mainlyattributed to the 2007 European crises the author is optimistic that themarket will surge though slowly but current forecasts shows that the economy in the Euro currency region will have recouped by 2018. The author also examines BREXIT referendum that destabilized the financial market when it happened. However, the departure of Britain only caused ripples when it happened, luckily the Euro market in Currency and outer region market regained stability. Throughout the article the author seem to be objective and backing findings with figures, however, the author has preconceived the election of Donald Trump as the president of the United States. The author is skeptical that President Trump foreign policies especially in Europe will have a direct and negative effect, this seem realistic considering the comments made by German Chancellor when Trump was elected.Although the market hit a low when president Trump was elected the opposite has happened when he assumed office. President Trump policies have impacted markets in other regions such as Asia; it is arguable that the Euro market has been on the rise upon his election.

The author concludes that the economy will be uncertain in 2017. I tend to agree to this conclusion because we are yet to see the US economic foreign policies under President Trump in Europe and the actual departure of Europe by Britain once their Parliament ratifies the referendum results. Lastly, the author should have focused more on stable countries both in the Euro area and countries outside the European Union and less on Britain and president Trump election.

 

 

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