ECONOMIC GROWTH AND THE POST-CRISIS BARRIERS IN THE EURO AREA IN 1995-2016
Pages: 106-118 Published: 22 Aug 2017
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Abstract: The aim of the paper is an assessment of the economic growth in aspect of decreasing development gap against the U.S. in 1995-2016. The subject of the analysis and assessment is also the impact of demand and supply factors on GDP growth as well as the barriers limiting investment and consumption demand. The measure of euro area development gap is the level of labour productivity against the U.S. The main conclusions of the analysis are: a) rate of economic growth in the euro area was lower than in the U.S. in the whole period of 1996-2016, b) euro area development gap against the U.S. increased during the 2008-2009 crisis and as the effect of post-crisis stagnation, c) main barrier for growth of investment and consumption demand is the decrease of credit supply in consequence of increase in households' and non-financial corporations' indebtedness and non-performing loans (NPL).
Keywords: euro area, the u.s., economic growth, supply and demand factors, barriers for demand growth in euro area