The European Central Bank (ECB) has decided to pump money into the continent’s capital market through its own quantitative easing (QE). What drove it to this?
As Table 1 shows, gross domestic product (GDP) growth in the euro zone is yet to recover. To add to it, industrial growth is doing particularly badly, as shown in Table 2, especially in the big European factory-countries of Italy and France.
Naturally, unemployment is correspondingly high across the euro zone, as Table 3 shows. And only Germany, as shown in Table 4, seems to be exporting enough.
The governments themselves are finding it difficult to spend, as Table 5 reveals – many have high fiscal deficits as a percentage of GDP. Italy’s debt as a percentage of GDP is also a worrying signal, as seen in Table 6.
For the ECB, the question of continent-wide deflation – as seen in Table 7 – must have been a contributory factor in its decision.
Bond yields are already surprisingly low, as revealed in Table 8.
Finally, Table 9 shows the dollar’s performance against European currencies.
Compiled by BS Research Buereau
Graphics by Anisha Dutta