The Global Financial Crisis and the Eurozone’s Lost Decade Cover Image

Световната финансова криза и загубеното десетилетие за Еврозоната
The Global Financial Crisis and the Eurozone’s Lost Decade

Author(s): Vasil Gechev
Subject(s): Economy, Supranational / Global Economy, Public Finances, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: financial crisis; financial crisis effects; Eurozone (euro area)
Summary/Abstract: This article explores the effects of the Great Recession of 2007-2008. This has been the most significant disruption of the global economy for the past several decades. Its broad scope and deepness are reaffirmed by the circumstances at present. None of the biggest economies in the world (Brazil, USA, Russia, Eurozone, Japan) have entirely overcome the consequences of the Great Recession – 10 years in its aftermath. There are, though, palpable differences in the degree at which Eurozone and another two developed countries – USA and Japan, have overcome the crisis. As we compare, it is visible that the economic situation in the Eurozone is rather unfavourable. The most distinct feature is the unemployment – in the mid-2018 the proportion of the unemployed people proportioned to the working age population in the Eurozone is as high as twice compared to USA and three times higher than the level in Japan. Apart from the unemployment, this paper reviews the real GDP growth as well as the GDP dynamics per capita, budget deficit and government dept in the Eurozone. Based on the analysis of a 10-year period post-2007, we could conclude this was Eurozone’s lost decade.