In an up and down economy, it is hard to remain optimistic, but there remain some reasons to feel good about Europe in 2015. Much of what happens in the Eurozone is a mirror reflection of the United States but in slightly lower numbers. The US has been able to pick up, knock off the dust and move forward from the Great Recession. According to leading economists with JP Morgan Chase, there is an expected 3% growth expected in 2015 in the US. While the Eurozone could be expected to grow at a more moderate rate of 1%, but growth is better than a slide into economic decay.
In 2014, Greece was able to borrow money at a rate of 6% interest. In 2012, the rate was 40% interest. The economic meltdown got averted, and it speaks volumes for the overall strength of the European economy. The biggest fear by leading economists is that Europe could fall into a triple-dip recession if the US economy falters again. The lowered oil prices seem like a safety net and barrier needed to keep that from happening. It eases impact on the wallets of Americans and reduces import costs to Europe. Extra money all the way around means more is available for investment and spending.
The strengthening US dollar and lower fuel costs point to what could be a banner year for tourism in Europe. Domestic travel and visitors from around the globe should bring a lot in fiscal terms to the economy, which may not have otherwise materialized. It will affect everything from lowering the cost of airline tickets, reducing the costs of hotels, restaurants, and encouraging more affordable coach tours. The slow and steady growth in the economy will make sure that all sites are open for tourists.
The average European may still feel a pinch in the wallet over the 2015 year, and the Euro currency could be in great danger, but the continued growth despite all the bad news could create more opportunities. However, even as an optimist, the European economy seems doomed in 2015, and I forecast it will be even more so towards the end of the year. However, if things do go well, it could set the stage for more growth and even better potential for 2016. Regardless of what happens, the European economy will carry on swimming for now, but it could be a big sink for the Euro currency. 😉
Written by: Mae Merriweather
Editor: Derin Cag (Founder & CEO – Richtopia.com)