We are looking forward to a new year facing economic difficulties, especially in Europe. Even the Nordic countries, which so far have done quite well in this climate of global economic downturn, are heading towards difficult times.
According to analysts at Nordea Bank, the world economy is improving, but uncertainties are high. Monetary policy will remain very cautious over the coming years and the tightening of fiscal policy in the Euro area will also subside. The key word is and remains debt reduction in both the private and public sector, and credit growth will be weak. Nordea predicts moderate growth in the world economy of 3,1% in 2012, increasing to 3,5% in 2013 and 3,8% in 2014.
How are the Nordic countries faring in this global crisis? Denmark, Sweden, Norway and Finland have safe haven status in financial markets. But while the Norwegian economy shines, darker clouds gather above Sweden while Finland and Denmark are on the brink of recession.
According to the New York Times 28.11.2012, the economy in Spain, after two decades of dizzying growth, is in deep trouble. For most of the last decade, Spain kept its fiscal house in order, running small deficits or even surpluses. The country enjoyed a long boom after joining the Euro zone, as low interest rates created a surge in construction. But it all came to an end with the financial crisis in 2008 and the following recession, sending Spain’s unemployment rate soaring to a present 25% overall. In Andalucia, the unemployment rate is 35 %, with 50% of the young people being unemployed.
Taking into account the opposition against all measures proposed by the government to resolve the crisis, the situation seems all but promising. Now, the latest issue in Spain is fierce opposition against some cuts in the health sector. For me, it is difficult to understand that people are unwilling to pay 1 Euro for their medicine in order to help up the Spanish economy.
A tiny contribution, but “every little helps”. The same goes for opponents to raising the age of retirement. In many countries people work until the age of 68, and 60 seems to me, very early.
Wage freezes and cuts are other measures that I presume have to be implemented in order to make ends meet, but how to achieve it is another question.
Well, with Christmas celebrations and a New Year ahead, there is no place for gloomy thoughts. Our club, Los Nordicos, has had a good year with a lot of interesting programmes, golf, walks in the mountains, a jazz circle headed by our jazz guru P-O Larsson, bingo, boule and trips to fascinating places. We are looking forward to an interesting 2013. The activities will start on January 16th with a meeting at Hotel Victoria Playa at 17.30 to meet old friends and get informed about the activities in 2013.
Until then I wish you all a Happy New Year with lots of new values.