Economic Pain in the EU

In a recent report, EU officials say that Europe’s economy will shrink by 4% in 2009 and stabilize in 2010. The Irish economy is predicted to shrink at twice this rate in 2009 and possibly at a rate of 2.5% in 2010!
The two economies worst affected, in the EU, are likely to be Ireland and Spain both of which experienced unsustainable construction driven booms.
Average unemployment this year is likely to be about 10% in the EU while unemployment for both Ireland and Spain is likely to reach a peak of up to 16% by 2010.
Before it levels off, the Irish budget deficit is likely to peak at 15% of GDP and the country’s debt could potentially reach 80% of GDP by 2010: an increase of a factor of three in two years!

Moral: It would appear that the most ‘target rich’ environments for investors in the EU, just now, are likely to be Ireland and Spain with the latter, particularly Tenerife, having a unique climatic advantage!!

Gerrygalvin1@gmail.com