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In this article, we take a look at Europe’s 20 largest economies.To skip the detailed analysis, go directly to Europe’s 5 largest economies.
Europe has long been considered the most developed continent in the world, experiencing decades of steady growth and high standards of living. Over the past 30 years, IMF data show that the continent’s average annual growth rate was 1.8%. But Europe’s famed stability was first hit hard in 2020 when the Covid-19 pandemic hit, turning Europe into the epicenter of the global pandemic. With the development of a vaccine, the pandemic subsided in early 2022, and just as Europe seemed to be experiencing high growth and returning to pre-pandemic levels, Russia’s invasion of Ukraine occurred. The invasion began around the end of February 2022, and its impact across the continent is still some time away, with Europe’s largest economy leading the way in the first half of 2022 with strong results.
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In the second half, however, the effects of the war were fully realized as global demand fell while inflation, which had already been rising before the war began, climbed to record levels. One of the biggest concerns facing Europe was the energy crisis after Russia refused to supply gas to some countries such as Poland because it refused to pay them in rubles. As a result, energy prices skyrocketed, driving record profits for the world’s largest oil companies, including Shell plc (NYSE:SHEL), ExxonMobil Corporation (NYSE:XOM) and BP plc (NYSE:BP). As a result, Europe has introduced a windfall tax on such companies to collect more tax on the extra profits made as a result of the energy crisis.
According to the European Commission’s Economic Outlook for Europe, growth in the European Union (EU) is expected to reach 0.8% in 2023 and 1.6% in 2024. Meanwhile, inflation in the EU, which averaged around 9.2%, is expected to fall significantly to 6.4% in 2023 and 2.8% in 2024. These positive forecasts are the result of positive news coming to gas benchmarks in the fourth quarter of 2022. Gas demand continued to decline and supply diversification was successful, keeping prices below war levels. Despite initial expectations of a contraction of 0.5% in Q4 2022, the economy remains generally sluggish and the labor market continues to perform strongly. All of this means that the expected recession in the EU appears to have just been avoided.
Of course, that doesn’t mean Europe won’t face any challenges in 2023. Global economic headwinds are still something the continent will have to grapple with, and rising energy costs will further affect business and reduce profits. Asset Management says global headwinds appear to be baked into European prices. stock exchange. European bonds, on the other hand, could be an exciting asset class with a low entry point as he reprices in 2022.
Europe’s largest economies dominate among those with the highest GDP in 2022. The combined GDP of these countries is over $22 trillion, which is interestingly still lower than the GDP of the United States alone, but many of these countries’ GDP per capita is still lower than that of the United States. Much better! These countries are generally among the countries with the highest quality of life, thanks to the way their economies are run. We have excluded Turkey from the list because most of the country is in Asia and some is in Europe. To determine the list, we found each country’s 2022 GDP from the International Monetary Fund databank. So let’s take a look at the countries that make Europe one of the best places to live.
20. Greece
Total National GDP in 2022 (Billions): $222
Greece still faces economic headwinds despite a rebound in tourism after restrictions are lifted in 2022. is expected to exceed the average of
19. Portugal
Total national GDP in 2022 (in billions): $256
Portugal’s real GDP growth was strong at 6.7% in 2022, but will remain at 1% in 2023. Because Russia’s war on Ukraine, rising energy prices, and problems with his supply chain are all hurting the country’s economy.
18. Finland
Total National GDP in 2022 (Billions): $281
The Nordic countries may form some of Europe’s largest economies, but economic performance in 2023 is not expected to brighten the continent. Finland, one of the Nordic countries facing a recession in 2023, will bounce back to 1.1% growth. 2024.
17. Czech Republic
Total national GDP in 2022 (in billions): $296
In the Czech Republic, inflation will drop significantly from 14.8% in 2022 to 9.3% in 2023. However, the economy is expected to grow by only 0.1% in 2023 as investment growth is believed to be the main driver of his 2023 economy. projection and performance.
16. Romania
Total national GDP in 2022 (in billions): $300
Romania has recorded a strong recovery from the Covid-19 pandemic in early 2022 despite continued double-digit inflation in the country.
15. Denmark
Total National GDP in 2022 (Billions): $387
Denmark received a ‘stable’ outlook from Fitch. Denmark is one of Europe’s largest economies, and the OECD projects her 0.1% growth in 2023, while inflation will drop from 8% in 2022 to She is 3%.
14. Austria
Total National GDP in 2022 (Billions): $468
According to the OECD, Austria achieved a healthy growth rate of 4.5% in 2022, but inflation is expected to remain high during this period. It is also expected to narrowly avoid a recession in 2023, with growth projections ranging from 0.1% to 0.5%.
13. Norway
Total national GDP in 2022 (in billions): $505
Norway’s economy derives its vast wealth largely from oil, and one of the largest companies is Equinor ASA (NYSE:EQNR). Norway’s economic growth is he expected to be just 0.7% in 2023, but in 2024 he will improve to 1.4%.
12. Ireland
Total national GDP in 2022 (in billions): $520
The Irish economy is expected to record Europe’s fastest growth of 4.9% in 2023, consolidating its position as one of Europe’s largest economies. Meanwhile, growth is expected to be a healthier 4.1% in 2024. This is because inflation continues to fall in Ireland, where the multinational increased his employment by 9% in 2022. You can visit his 10 of Ireland’s biggest companies to find out more.
11. Belgium
Total National GDP in 2022 (Billions): $589
Fitch recently revised Belgium’s outlook to ‘negative’ but maintained its ‘AA-‘ rating as a result of its wealthy and diverse economy.
10. Sweden
Total national GDP in 2022 (in billions): $604
The finance minister of Sweden, the Nordics’ largest economy, expects headline inflation to rise in 2023 compared to 2022, while the country is expected to enter recession in 2023 and end in 2024. It is stated that
9. Poland
Total National GDP in 2022 (Billions): $716
Poland was one of the countries worst affected by the war between Russia and Ukraine. This is due not only to energy prices, but also to the largest influx of refugees from Ukraine. Although most have moved to other countries. However, inflation in 2022 will be the highest among EU countries at her 13.2%, and in 2023 she will remain at 11.7%, and in 2024 she is expected to fall to 4.4%.
8. Switzerland
Total national GDP in 2022 (in billions): $807
Banking and finance is Switzerland’s largest industry, which is not surprising given the secrecy and popularity surrounding the banking industry. The Swiss economy is expected to remain stagnant in the fourth quarter of 2022 and grow slowly at a rate of 1% in 2023.
7. Holland
Total national GDP in 2022 (in billions): $991
Information technology, chemicals, high-tech systems and energy are among the largest industries in the Netherlands. With a population of just 17.5 million, the Netherlands is also one of the smallest countries on the list. Inflation is expected to peak at 15.4% in the fourth quarter of 2022 and fall to 3.9% by 2024, according to the OECD.
6. Spain
Total National GDP in 2022 (Billions): $1,390
Spain is expected to benefit from a stronger-than-expected carryover from 2022 onwards, with GDP growth projected at 1.4%. A strong recovery in tourism and higher consumer spending following the lifting of restrictions has helped Spain weather the shocks of the wars in Russia and Ukraine relatively well.
Click to read more and discover Europe’s five largest economies.
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Disclosure: None. Europe’s 20 largest economies were first published on Insider Monkey.
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