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The Economic State of the Union 15th EuroMemo Annual Workshop Berlin, 25-27 September 2009 Trevor Evans The Crisis in the US International Transmission World trade in goods Change in 3-month average over same period in previous year, % Source: CPB Netherlands Bureau for Economic Policy Analysis, World Trade Monitor, June 2009, August 2009 Europe Source: Eurostat, News release, 129/2009, 14 September 2009 EU GDP Growth (% change over previous quarter) 1.5 2008 Q1 1.0 0.5 0.0 -0.5 EA16 EU27 -1.0 -1.5 -2.0 -2.5 2000 2002 2004 Source: Eurostat, 2006 2008 EU GDP Growth (% change over four quarters) 6 2008 Q1 4 2 0 EA16 EU27 -2 -4 -6 2000 2002 2004 Source: Eurostat 2006 2008 EU Exports (% change over four quarters) 6 EA16 EU27 4 2 0 -2 -4 -6 2000 2002 2004 Source: Eurostat 2006 2008 EU investment in fixed capital (% change over four quarters) 10 EA16 EU27 5 0 -5 -10 -15 2000 2002 2004 Source: Eurostat 2006 2008 Source: Eurostat, News Release, 123/2009, 1 September 2009 EU Unemployment by gender (%) 10 Female 9 8 Male 7 6 2000 2002 2004 Source: Eurostat 2006 2008 Source: Eurostat, News Release, 123/2009, 1 September 2009 Euro Area: Non-financial corporations gross operating surplus (Euros millions, four-quarter cumulated flows) Source: Eurostat Euro Area: Non-financial corporations net entrepreneurial income (Euros millions, four-quarter cumulated flows) Source: ECB Euro Area: Non-financial corporations compensation of employees (Euros millions, four-quarter cumulated flows) Source: ECB Consumption expenditure (% change over four quarters) 4 EA16 EU27 3 2 1 0 -1 2000 2002 2004 Source: Eurostat 2006 2008 Central Bank interest rates (%) Central bank balance sheets Source: OECD, What is the economic outlook for OECD countries?, September 2009 Money market stress Euro area banks reporting tightening of credit conditions (%) Source: OECD based on ECB data Dollar - Euro exchange rate 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 EU governments’ fiscal stimulus packages, % GDP Source: Andy Watt, A quantum of solace, ETUI Working Paper 2009.5 EU fiscal packages by country (% GDP) Source: Andy Watt, A quantum of solace, ETUI Working Paper 2009.5 EU Policy G 20 Meeting