Southern Europe is the continent’s new economic growth engine

Southern European Economies Drive Growth in the Euro Area

Business surveys by S&P Global released this week showed Spain and Italy beat economists’ expectations with faster expansion in March. A manufacturing gauge for Greece indicated a similar trend. This helped the index for the currency bloc emerge from contraction for the first time in 10 months.

SDG 8: Decent Work and Economic Growth

Spain and Italy provided the greatest boosts, with their growth rates accelerating to the strongest for nearly a year. This helped offset sustained contractions in output in Germany and France that began in mid-2023.

SDG 9: Industry, Innovation, and Infrastructure

A tourism surge since the pandemic, booming exports, and lower energy prices thanks to renewables and limited reliance on Russian gas, have given so-called periphery countries on the Mediterranean the edge in the euro area.

SDG 3: Good Health and Well-being

After the pandemic, “tourism is doing very well in the European south,” said Bank of Greece Governor Yannis Stournaras. The region’s relatively strong growth is mainly due to the fact that southern European countries have “corrected their imbalances, so now they are developing at a healthy rate without macroeconomic imbalances,” Stournaras added.

SDG 1: No Poverty

Just over a decade ago, these same countries were at the core of a debt crisis that called into question the currency’s survival. However, this year, Spain, Portugal, and Greece are expected to be among the top performing economies in the 20-nation bloc, according to the European Commission.

SDG 10: Reduced Inequalities

Investors including Vanguard Asset Management, JPMorgan Asset Management, and Neuberger Berman have been buying up the government bonds of southern European countries, taking advantage of a rally that’s sharply narrowed the premium over Germany and France.

SDG 7: Affordable and Clean Energy

In addition to benefiting from less exposure to fossil fuel price rises, Spain has lower labor costs than France, Germany, and Italy, a skilled workforce, and a well-functioning healthcare system. It is also set to benefit from businesses reshoring production.

SDG 12: Responsible Consumption and Production

Domestic demand remains strong in Spain, with consumers and corporations having cut debt levels to the lowest since before the 2008-2012 crisis, and the unemployment rate hovering around the lowest since 2007.

SDG 11: Sustainable Cities and Communities

In neighboring Portugal, tourism brought in record revenue in 2023, up from the previous year. The country has also seen a steady increase in exports and has become Europe’s biggest bike manufacturer since 2019. Portugal has also been able to reduce the need for gas to generate power by utilizing wind turbines and hydropower.

SDG 8: Decent Work and Economic Growth

Greece, which won back its investment grade status late last year, has seen tourism break record levels every year since the pandemic. Construction is also a large growth driver in Greece.

SDG 9: Industry, Innovation, and Infrastructure

In another sign of recovery, Greece recently had its biggest initial public offering in more than two decades with the sale of a 30% stake in Athens International Airport.

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SDGs, Targets, and Indicators

1. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries.
   • Indicator 8.1.1: Annual growth rate of real GDP per capita.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.
   • Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.

3. SDG 11: Sustainable Cities and Communities

   • Target 11.4: Strengthen efforts to protect and safeguard the world’s cultural and natural heritage.
   • Indicator 11.4.1: Total expenditure (public and private) per capita spent on the preservation, protection, and conservation of all cultural and natural heritage.

4. SDG 12: Responsible Consumption and Production

   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.

5. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning measures into their national policies, strategies, and planning.

6. SDG 14: Life Below Water

   • Target 14.7: By 2030, increase the economic benefits to small island developing states and least developed countries from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture, and tourism.
   • Indicator 14.7.1: Sustainable fisheries as a proportion of GDP in small island developing states, least developed countries, and all countries.

Table: SDGs, Targets, and Indicators

Analysis

The article highlights several issues related to sustainable development goals. Here is a breakdown of the SDGs, targets, and indicators identified based on the article’s content:

1. SDG 8: Decent Work and Economic Growth

   • Target 8.1: The article mentions the economic growth of Spain, Italy, Portugal, and Greece, indicating progress towards sustaining per capita economic growth.
   • Indicator 8.1.1: The article discusses the growth rates of these countries, which can be used to measure the annual growth rate of real GDP per capita.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: The article highlights the growth of industries such as tourism, manufacturing, and construction in Spain,

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     Source: fortune.com

      

     

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