Euro countries recovered from crisis at different paces

Abstract

Following the steep contraction caused by the financial crisis, there have been substantial differences in economic performance across the different countries in the euro area. Some countries experienced a double recession from which recovery has been slow. In others, the economy picked up at a steady pace, and in some cases actually rather quickly. The stressed economies in the euro area have also recovered at varying speeds. Healthy economic structures seemed to have facilitated a speedier recovery. At the moment, the four largest euro area economies are growing at a rate above their potential output. Nevertheless, their long-term growth prospects differ from each other.