The Southern Four, seen as bad examples since the financial crisis, have far outperformed their northern counterparts in a weakening Europe.
Being the countries with the most economic problems in the European bloc, the group known as PIGS (Portugal, Italy, Greece and Spain) recorded growth above the European average, a trend that should continue to emerge in 2024. On the other hand, Northern Europe is experiencing greater difficulties as a result of the energy shock, while the South is benefiting from the above-expected development in tourism and seizing the opportunity to correct some structural imbalances. Challenges will remain, but for now the pace of the single currency is set by the most indebted countries.
In light of the clear difficulties facing the euro area, the countries of the South are characterized by the vitality and strength they have shown in recent years. The pandemic shock was stronger in Greece, whose economy relied more on contact-intensive sectors, such as tourism and restaurants, but on the other hand, lower energy dependence and lower integration with Russia have protected these countries in the past two years. With Germany, the bloc’s economic engine, at risk of flu, it is the south that is presenting itself as the leader of European growth.
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