Economic differences between the euro zone’s core and periphery are their most marked in over 10 years, according to a new report, and look set to widen as the region’s nascent recovery takes hold.
Professional services firm Ernst and Young (EY) said that euro zone countries were now at their most economically divergent since the early 2000s, according to its “convergence indicator,” which takes into account variables including gross domestic product, inflation, unemployment rates and government balances.
The gap can been seen in terms of growth – Germany’s economy expanded by 0.7 percent in the second quarter of this year, but the economies of a number of countries, such as Spain and Italy, continued to shrink – as well across lending and employment.
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