The growth rate of the EU's GDP in the first three quarters was only 04%, which can be said to be a far cry compared to China. The economic growth momentum of core EU member states such as Germany, France, and Italy is also gradually declining, while the global economic landscape has undergone important changes. In this article, we will analyze and summarize the reasons for the sluggish economic growth in the European Union and compare the situation in China and the United States.
In the first three quarters of 2023, the economic growth of the EU27 is not encouraging. Both seasonally adjusted standards and statistical standards, which do not use calendar and seasonally adjusted rules, show the weakness of economic growth in the EU. Germany, as the "locomotive" of European economic development, is currently in recession, which has become a drag on the European economic recovery. Countries such as France and Italy are also facing challenges from continued economic weakness and downside risks.
Not only that, but inflation within Europe has also hit a new high in recent decades. Despite the average exchange rate of the euro against the US dollar**, the EU-27 is still growing much lower than other large economies such as China, the United States, Japan, India and South Korea.
1.Structural adjustment lags: The economic structure of the EU27 is relatively conservative, and the development of emerging industries and the improvement of innovation capabilities are relatively slow. As a result, the European economy is unable to adapt to the current changes in the global economic landscape.
2.Policy constraints: Difficulties in policy coordination among countries within the EU hinder overall economic growth. The limited ability of countries to coordinate their response to economic problems has led to the dilemma of the European economy as a whole.
3.Ageing population: European countries are facing a serious aging population, which poses a huge challenge to economic growth. The aging population is increasing and the labor supply is insufficient, which cannot provide sufficient impetus for economic development.
4.Geopolitical risks: There are some geopolitical risks in the European region, such as Brexit and the Ukraine crisis, which have caused certain uncertainties and shocks to the European economy.
Compared to the EU-27, China's economic growth has performed well. In the first three quarters of 2023, China's economic growth rate reached 49%, well above the EU-27 of 04%。China's economic growth has benefited from structural adjustment and reform and opening up, and the growing and growing emerging industries have provided impetus for economic growth.
In addition, China has also taken a series of measures to deal with the aging of the population, such as promoting the development of the pension industry and improving the pension security system, creating a good population environment for economic development.
Compared to China, economic growth in the United States has been sluggish. In the first three quarters of 2023, the U.S. economy grew at a rate of just 25%, less than half of China's economic development level. Although the United States is facing high inflation and prices**, this has not significantly improved economic growth in the United States, but has exacerbated inequality and social stability.
The sluggish economic growth in the EU-27 is the result of a combination of factors. Lag in structural adjustment, policy constraints, population aging and geopolitical risks are the main reasons for Europe's economic difficulties. In contrast, China's economy has done well in meeting these challenges, thanks to structural adjustment and reform and opening-up. However, China also faces some problems, such as the challenge of price tightening and the exchange rate of the renminbi not as good as the euro.
Against the backdrop of changes in the global economic landscape, all countries should strengthen policy coordination and cooperation based on the principles of cooperation and mutual benefit, and jointly promote the stability and prosperity of the global economy. At the same time, each country should also strengthen internal structural adjustment and institutional innovation according to its own actual conditions, so as to enhance the driving force and adaptability of economic development.