Today’s European industrial production tells a tale of two Europes.
February 2010 industrial production rose year over year in fourteen European countries, as should be expected since right now industrial production is rising year over year across most of the world.
The world has rebounded from pretty dire straits in February 2009 after all. Total industrial production for the EU27 (27 nations) 6.5%.
A rising tide lifts all boats right? Well usually, but not always.
Some European nations haven’t caught the global rebound yet. Eight European nations saw their industrial production fall in February 2010. Greece, Bulgaria, Denmark, and Lithuania experienced -10.4%, -9.8%, -6.1%, and -4.8% year over year drops… even still today after most of the world is turning around.
Greece obviously sticks out like a sore thumb and this industrial production data shows why the nation is in such deep trouble. If the nation simply had too much debt, but could at least perform in-line with the global economy (just ride it up and down like the average nation), then things wouldn’t be too bad. Greece is a disaster because it is both heavily in debt due to unsustainable government spending AND it’s economy is horribly uncompetitive to boot. This -10.4% data point is horrendous given where the entire world is right now. Imagine what would happen to Greece if the world actually hit a new crisis. They’d be wiped out.
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