Thursday, July 14, 2016

Dirk Ehnts — Sectoral balances of the eurozone

This afternoon I devoted to the sectoral balances of the eurozone. The current account is inverted, the public deficit a deficit and the private sector financial surplus a surplus. Some of the recent data is probably a forecast. I let the data speak for itself for now. Just one comment: the only country not able to run a consistent and significant surplus in the private sector is Greece. This is situation is hardly sustainable as debts are more easily repaid when a surplus exists. Continuation of the debt structure into the future is hence possible, but not likely.
Here the sectoral balances (in % of GDP; data from AMECO):
econoblog 101
Sectoral balances of the eurozone
Dirk Ehnts | Lecturer at Bard College Berlin

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