Economics
Economic Recovery, Euro-Style: This Could Be as Good as It Gets
Continent-wide numbers the ECB uses to set interest rates mask a geographically divided economy: while Germany and its northern neighbors deliver prosperity, post-traumatic stress stalks the south.
Photographer: Angel Navarrete/BloombergThis article is for subscribers only.
Europe’s economy has been hit so hard by five years of crisis that 1.6 percent growth makes Germany look like a powerhouse and Spain can boast of being a job-creating machine with 23 percent unemployment.
The tepid recovery is just fine with bond investors. They are charging Italy and Spain less than 2 percent to borrow for 10 years, compared with more than 7 percent at the height of the crisis. Euro-area economic confidence reached a four-year high last month.