Today, Croatia joined the European Union, time to celebrate! But should we really celebrate?
What we took in the European Union is a bunch of problems.
First off, the unemployment rate of Croatia is a staggering 20%, rivalling with Spain and Greece.
Second, its balance of trade is negative and has always posted a trade deficit.
To make matters worse, since 2008, the country was in recession and is still in a recession. Added to this, there is an almost 5% inflation in the country (which has come down to 2% just recently), which makes real GDP decline even more rapidly. As we have seen recently in this correlation, it doesn't bode well for the unemployment rate, which will keep rising.
This decline in GDP quickly added to the government's debt. A positive point is that the government debt to GDP is still at 54%, which is good. But it is worsening. External debt though, is higher at around 90% of GDP.
As debt goes up, the country's bonds had been downgraded to junk status last year. This creates the possibility of a bail out of the country by the IMF once it joins the Eurozone.
What a gift.
- List of Correlations
- Q Ratio
- Stock Valuation
- Leading/Coincident Indicator
- Misery Index
- Junk Bonds Vs. Stocks
- Currency Vs. Bonds
- Yield Curve Vs. Fed Funds Rate
- U.S. Bond Yields
- Dividend Yield Vs. Bond Yield
- QE Vs. Bond Yields
- Money Supply
- Dow Theory
- Yen Carry Trade Vs. Gold
- Yen Carry Trade Vs. Stocks
- SMI Vs. Dow
- Potemkin Rally
- QE Infinity
- Excess Reserves
- Central Bank Solvency
- Central Bank Balance Sheets
- Fed Balance Sheet Vs. Dow Jones
- Credit Spread Vs S&P
- Total credit Vs. Dow Jones
- Debt
- Debt Vs. Delinquency
- Percentage Debt Held by Foreigners
- Interest Payment on Government Debt
- Retail Sales Vs. Disposable Income
- Tax Revenue Vs. Savings Rate
- Trade Balance Vs. Currency
- Deficit
- Deficit to Outlay Ratio
- China Power Consumption Vs. China GDP
- Inventory Vs. GDP
- GDP Vs. Trade Balance
- GDP Vs. 10 Year Bond Yield
- GDP Vs. PMI
- Profits Vs. Employment
- Employment-Population Ratio Vs. Wages
- Employment-Population Ratio Vs. GDP per Capita
- Unemployment Vs. GDP
- Part-time Employment
- Output Gap Vs. CPI
- Retail Sales Vs. CPI
- LIBOR Vs. Fed Funds Rate
- Loan Growth Vs. Fed Funds Rate
- Fed Funds Rate Vs. CPI
- Fed Funds Rate Vs. Unemployment
- Delinquency Vs. Fed Funds Rate
- Labor Force Participation Vs. Unemployment
- Non-Farm Payrolls Vs. Job Hires
- Non-Farm Payrolls Vs. Unemployment
- Quits Rate Vs. Wage Inflation
- Wage Inflation Vs. Unemployment
- Wage Inflation Vs. CPI
- M1 Vs. CPI
- Capacity Utilization Vs. CPI
- Capacity Utilization Vs. Unemployment
- Housing Starts Vs. Unemployment
- Initial Jobless Claims Vs. S&P
- Consumer Sentiment Vs. S&P
- Durable Goods Orders Vs. S&P
- Building Permit Vs. Housing
- Adjustable Mortgage Vs. Fed Funds Rate
- Fixed Mortgage Rates Vs. 30 Year Bond Yield
- MZM Vs. 10 Year Bond Yield
- Gold Vs. 10 Year Bond Yield
- Dow/Gold Ratio
- Gold Price Target
- Gold ETF Vs. Gold Price
- Silver ETF Vs. Silver Price
- Gold/Silver Shorts
- COT Report Gold/Silver
- Gold Lease Rate
- Gold/Silver COMEX
- Silver/Gold Premium Charts
- China Gold Imports from Hong Kong
- Copper Contango Theory

zondag 30 juni 2013
Croatia To Join European Union
Labels:
Croatia,
Debt,
European Union,
gdp
Abonneren op:
Reacties posten (Atom)
As far as I know, Croatia joined EU, but not Eurozone.
BeantwoordenVerwijderenCorrected :)
Verwijderen