New Economic Engines: Which Country is Leading in Europe?

There are several levels of development, from the emerging economies to the developing countries. The World Bank classifies countries by their income. From a low income, through an intermediate level including an heterogeneous group of countries, to the high income nations.

After the crisis, economy has started to recover quite everywhere. Many countries have faced it engaging new economic challenges, some others only hold out.

Economic growth in Eastern Europe remains the slowest of all developing regions of the world – together with Central Asia. This region is expected to see a weak growth this year, less than 2% and it will reach only a 4% in 2017. The region suffered or recession, due the direct and indirect impact of the oil price shock and ongoing geopolitical tensions, caused mostly by Russia – not at all out of the slowdown, for instance.

In this scenario, can we hope to see a low income country emerge? The answer is no, unfortunately. Developing countries in Eastern Europe are still living in conditions that collide with data about the second purchasing power of the world. Romania seems to be the most promising of its region. A quick recovery thanks to a prudent macroeconomic management. Economic activity picked up in 2013, with growth estimated at 3.5%, and growth for 2014 is estimated at 2.8%. As the government is making big interventions, GDP (per capita and absolute) runs into some difficulties to improve – only 9,490 USD per capita and a national value around 190 USD bl. Despite large strides, the poverty rate in Romania is still among the highest in the EU.

Challenges to accelerate growth in the country include uncertainty in the Eurozone.

For sure, Western countries in Europe will lead the continent for long time. The only exception that could challenge this politic layout is Russia, if “Putinism” could ever end. Europe, as union, seems to leave behind the weakest, like the Spartan infanticide.

The Federation doesn’t look the best way for the European zone. And the choice of the euro begin to turn up the nose to the biggest too, at the end.