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Eurostat Publishes Table for Economic Imbalance Indicators

By:
Peter Taberner

Eurostat have revealed the Macroeconomic Imbalances Procedure (MIP) scoreboard, which is part of the ‘sick pack’ set of regulations that have been in

Eurostat Publishes Table for Economic Imbalance Indicators

Eurostat have revealed the Macroeconomic Imbalances Procedure (MIP) scoreboard, which is part of the ‘sick pack’ set of regulations that have been in place for the past four years, as adopted by the European Council and Parliament.

The scoreboard is designed to provide the support for the annual Alert Mechanism Report, that is released by the European Commission.

The report details the in-depth analysis which is required for member states, whose economic performances in specific areas have started to cause concern.

There are 14 separate categories that are highlighted by the report, that are  the most relevant for the early detection of economic imbalances.

This year, three further labour market indicators have been added to the original list, the include activity rate, long term unemployment, and youth unemployment.

Alongside Eurostat, the data is compiled by the European Commission and the International Monetary Fund.

MIPS Scores Reveal Member State Differences

The Netherlands can celebrate the most positive news for its current account balance, over a three year average of its GDP, with a score of  10.9%, over the threshold mark of -4/6%.

The most worrying figures came from Cyprus, who posted a score of -4.9%, followed by the United Kingdom, traditionally one of Europe’s strongest economies, on a minus score of 4.3%.

For the net international investment position, the threshold level is -35%, the Netherland again scored the highest on 60.8%, followed by Belgium on 57.2%, notably Germany scored 42.3%.

Cyprus were the least influential in this category with a minus score of 139.8%, perhaps unsurprisingly Greece recorded the second lowest figure of -124%.

Eurostat Publishes Table for Economic Imbalance Indicators
Eurostat Publishes Table for Economic Imbalance Indicators

Export Market Share Figures Show Many Below Threshold

In total 18 countries fell below the threshold figure of -6% for the net level of export market share.

Cyprus again finished lower than any other member state country, falling to -26.7%, followed by Finland, who have suffered poor economic figure throughout this year, on -24%.

There was far better news for the Baltic nations, as Lithuania secured the highest export increase of 35.3%, with Estonia recording  a 24.5% increase. Eastern Europe was also bolstered by Romania who posted a 21.5% export share level.

Surprisingly Germany suffered a loss of 8.3% in its global export share, alongside the 8.7% loss that the UK posted, France also fell below the threshold as world wide trade was reduced by 13.1%.

Euro Falls to Below 1.6 level to US Dollar

The Euro has fallen to its lowest level against the US Dollar for the past three months, as it precipitated to below the $1.6 mark.

At 1030 AM GMT, the euro was trading at 1.058$, as the speculation has grown surrounding an expansion of the Quantitative Easing programme by the European Central Bank, and an interest rate cut.

Also the US economy also received encouraging news with a third quarter economic growth revised up to 2.1%, a 0.6% increase from the original figures that were released.

Against the pound there was a different story, as the euro climbed to the £0.705 this morning GMT, before being pulled down to still a relatively high £0.703.

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