Latest news with #SouthernEuropean
Gulf Insider
a day ago
- Business
- Gulf Insider
Rich Countries, Short Weeks: Europe's East-West Labor Divide
Europe's labor landscape reveals a clear regional split: wealthy nations in the North and West, including the Netherlands, Germany, Switzerland, and Denmark, thrive on flexibility, shorter workweeks, and robust employment rates exceeding 75%. As Visual Capitalist reports, these countries strike a balance between prosperity and adaptability, highlighting how economic strength is aligned with modern, flexible working arrangements. In contrast, Eastern and Southern European countries, including Romania, Bulgaria, Poland, and Hungary, as well as Mediterranean states such as Portugal, Malta, and Cyprus, strongly prefer traditional full-time schedules, with fewer than 10% of jobs being part-time. Countries like the Netherlands, Denmark, and Germany exemplify efficiency, consistently working up to four hours fewer than predicted by their GDP. Conversely, Luxembourg, Greece, and Iceland work longer hours than their wealth suggests. Across most of Europe, prosperity tends to align with flexibility, reduced working hours, and higher employment rates, yet cultural traditions and unique economic factors continue to shape these exceptions. Source Zero Hedge
Yahoo
10-07-2025
- Business
- Yahoo
Spain overtakes Japan in GDP per capita - what is behind the numbers?
What once seemed improbable became possible when the Spanish economy produced higher GDP per capita, a metric closely linked to living standards, than the G7 member Japan, according to IMF data. This, in itself, doesn't mean that the Southern European economy is bigger than Japan's when comparing its overall value of goods and services. But when Spain's GDP is divided by the number of people living in the country and turned into US dollars, the GDP per capita in current prices turns out to be higher than that of Japan's. In 2025, the GDP per capita denominated in US dollars was $33,960 in Japan, whereas in Spain it came to $36,190. This same figure was already slightly higher in the Southern European economy than in the Asian tech-oriented economy in 2024. 'There is a real story behind this, but also a big caveat,' pointed out Ángel Talavera, Head of Europe Economics at Oxford Economics. While the Spanish economy has been one of the fastest-growing, 'this figure is also driven by a statistical artifact,' he told Euronews Business. 'The Japanese yen has depreciated 40% since 2021, which means that even if Japanese GDP per capita in local currency remains unchanged, it is 40% lower when measured in US dollars,' he said. This means that a large amount of Japanese economic data has deteriorated significantly in recent years when measured in US dollars needed for international comparisons. Related The Spanish economy grew 3.2% in 2024: Why is it outperforming peers? Spanish economy bucks the trend as it continues to show growth Spain, which emerged from the financial crisis a little over ten years ago, expanded its economy by 3.2% in 2024, outperforming France, Germany and Italy, the three biggest economies in the eurozone. The German economy, Europe's biggest, contracted by 0.2%. Spain's GDP was driven up by strong domestic demand, robust tourism, and other services. The service sector provides a little over two-thirds of the country's economic output, and improvement on this front is one of the key reasons behind Spain's success. 'Global tourism has benefited this economy more strongly than it has benefited Japan,' said Mathieu Savary, Chief European Strategist at BCA Research. In Spain, growth was also strengthened by strong government support and lower energy prices than in other European countries. Significant population growth also contributed to improved output. Savary added that Spain's strong economic performance in the last decade has been supported by 'brutal reforms and a major adjustment in labour costs in the wake of the European Sovereign Debt Crisis last decade, that have boosted its competitiveness'. During the financial crisis, unemployment in Spain was around 25%, one of the highest in the EU. There was a tendency for struggling businesses to favour temporary staff contracts, and in response, Spain approved reforms to soften employee protection in permanent contracts. Reducing firing costs and workers rights, among other reforms, improved labour mobility, helping to match positions with skilled workers, leading to improved productivity. Meanwhile, Japan's "ossified labour market means that its labour productivity remains poor,' Savary added. Japan, the fourth-largest economy in the world, has been struggling to maintain its leading role in the global economy, losing its spot as the third biggest economy to Germany last year. IMF data suggests that in 2025, Japan is expected to be overtaken by India as well, falling to fifth position in terms of GDP. The technology-driven Japanese economy has barely grown in the last three decades, and it was hit hard by the COVID-19 pandemic. Its GDP collapsed by 4.2% in 2020. Japanese research firm Nikko Research Center said in a recent report that the country has been struggling due to the lack of innovation. The report also noted that in the year 2000, Japan's GDP per capita was ranked globally the second highest after Luxembourg. It is now the 38th. Related Japan's Prime Minister urges Trump to choose investment over tariffs Germany now world's third largest economy as Japan loses its spot Japan's current economic performance doesn't point to a quick turnaround. The economy shrank in the first quarter, driven by weak exports. This is coupled with a sluggish domestic demand, rising inflation and slow production. US tariffs and tariff threats are damaging exports and industrial production, fuelling fears that Japan's economy could go into recession in the second quarter. The Japanese economy is sustained by a lot of fiscal stimulus, focusing on energy subsidies, wage support, and digital infrastructure. The continuing lethargy in the Japanese economy is also fuelled by its ageing population, resulting in acute labour shortages and mounting social security costs. Service-driven economies such as Spain are projected to outperform in the future, too, as consumer trends are shifting across the globe. Overall, the contribution of services to economies worldwide has increased significantly. The service sector's share of global GDP increased from 53% to 67% between 1970 and 2021, according to the World Trade Organisation (WTO). According to the IMF, Spain's GDP per capita is expected to remain ahead of Japan's until the end of its current forecast, in 2030. Spain's GDP per capita is expected to exceed $42,300 while Japan's will remain around $41,700, based on current trends. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
03-07-2025
- Business
- Euronews
How did Spain overtake Japan in GDP per capita?
What once seemed improbable became possible when the Spanish economy produced higher GDP per capita, a metric closely linked to living standards, than the G7 member Japan, according to IMF data. This, in itself, doesn't mean that the Southern European economy is bigger than Japan's when comparing its overall value of goods and services. But when Spain's GDP is divided by the number of people living in the country and turned into US dollars, the GDP per capita in current prices turns out to be higher than that of Japan's. In 2025, the GDP per capita denominated in US dollars was $33,960 in Japan, whereas in Spain it came to $36,190. This same figure was already slightly higher in the Southern European economy than in the Asian tech-oriented economy in 2024. 'There is a real story behind this, but also a big caveat,' pointed out Ángel Talavera, Head of Europe Economics at Oxford Economics. While the Spanish economy has been one of the fastest-growing, 'this figure is also driven by a statistical artifact,' he told Euronews Business. 'The Japanese yen has depreciated 40% since 2021, which means that even if Japanese GDP per capita in local currency remains unchanged, it is 40% lower when measured in US dollars,' he said. This means that a large amount of Japanese economic data has deteriorated significantly in recent years when measured in US dollars needed for international comparisons. What drove Spanish growth over the past few years? Spain, which emerged from the financial crisis a little over ten years ago, expanded its economy by 3.2% in 2024, outperforming France, Germany and Italy, the three biggest economies in the eurozone. The German economy, Europe's biggest, contracted by 0.2%. Spain's GDP was driven up by strong domestic demand, robust tourism, and other services. The service sector provides a little over two-thirds of the country's economic output, and improvement on this front is one of the key reasons behind Spain's success. 'Global tourism has benefited this economy more strongly than it has benefited Japan,' said Matthieu Gertken, BCA Research's Chief Geopolitical Strategist. In Spain, growth was also strengthened by strong government support and lower energy prices than in other European countries. Significant population growth also contributed to improved output. Gertken added that Spain's strong economic performance in the last decade has been supported by 'brutal reforms and a major adjustment in labour costs in the wake of the European Sovereign Debt Crisis last decade, that have boosted its competitiveness'. During the financial crisis, unemployment in Spain was around 25%, one of the highest in the EU. There was a tendency for struggling businesses to favour temporary staff contracts, and in response, Spain approved reforms to soften employee protection in permanent contracts. Reducing firing costs and workers rights, among other reforms, improved labour mobility, helping to match positions with skilled workers, leading to improved productivity. What is constricting Japan's economy? Meanwhile, Japan's "ossified labour market means that its labour productivity remains poor,' Gertken added. Japan, the fourth-largest economy in the world, has been struggling to maintain its leading role in the global economy, losing its spot as the third biggest economy to Germany last year. IMF data suggests that in 2025, Japan is expected to be overtaken by India as well, falling to fifth position in terms of GDP. The technology-driven Japanese economy has barely grown in the last three decades, and it was hit hard by the COVID-19 pandemic. Its GDP collapsed by 4.2% in 2020. Japanese research firm Nikko Research Center said in a recent report that the country has been struggling due to the lack of innovation. The report also noted that in the year 2000, Japan's GDP per capita was ranked globally the second highest after Luxembourg. It is now the 38th. Japan's current economic performance doesn't point to a quick turnaround. The economy shrank in the first quarter, driven by weak exports. This is coupled with a sluggish domestic demand, rising inflation and slow production. US tariffs and tariff threats are damaging exports and industrial production, fuelling fears that Japan's economy could go into recession in the second quarter. The Japanese economy is sustained by a lot of fiscal stimulus, focusing on energy subsidies, wage support, and digital infrastructure. The continuing lethargy in the Japanese economy is also fuelled by its ageing population, resulting in acute labour shortages and mounting social security costs. Is this a short-lived success for the Spanish economy? Service-driven economies such as Spain are projected to outperform in the future, too, as consumer trends are shifting across the globe. Overall, the contribution of services to economies worldwide has increased significantly. The service sector's share of global GDP increased from 53% to 67% between 1970 and 2021, according to the World Trade Organisation (WTO). According to the IMF, Spain's GDP per capita is expected to remain ahead of Japan's until the end of its current forecast, in 2030. Spain's GDP per capita is expected to exceed $42,300 while Japan's will remain around $41,700, based on current trends.
Gulf Today
25-06-2025
- Gulf Today
Surging travel in Europe spikes concerns over tourism's drawbacks
Suitcases rattle against cobblestones. Selfie-snappers jostle for the same shot. Ice cream shops are everywhere. Europe has been called the world's museum, but its record numbers of visitors have also made it ground zero for concerns about overtourism. Last year, 747 million international travelers visited the continent, far outnumbering any other region in the world, according to the UN's World Tourism Barometer. Southern and Western Europe welcomed more than 70% of them. As the growing tide of travelers strains housing, water and the most Instagrammable hotspots in the region, protests and measures to lessen the effects of overtourism have proliferated. Here's a look at the issue in some of Europe's most visited destinations. Among factors driving the record numbers are cheap flights, social media, the ease of travel planning using artificial intelligence and what UN tourism officials call a strong economic outlook for many rich countries that send tourists despite some geopolitical and economic tensions. Citizens of countries like the US, Japan, China and the UK generate the most international trips, especially to popular destinations, such as Barcelona in Spain and Venice in Italy. They swarm these places seasonally, creating uneven demand for housing and resources such as water. Despite popular backlash against the crowds, some tourism officials believe they can be managed with the right infrastructure in place. Italy's Tourism Minister Daniela Santanchè said she thinks tourism flows at crowded sites such Florence's Uffizi Galleries that house some of the world's most famous artworks could be better managed with AI, with tourists able to buy their tickets when they book their travel, even months in advance, to prevent surges. People taking selfies outside the She pushed back against the idea that Italy - which like all of its Southern European neighbors, welcomed more international visitors in 2024 than its entire population - has a problem with too many tourists, adding that most visits are within just 4% of the country's territory. "It's a phenomenon that can absolutely be managed," Santanchè told The Associated Press in an interview in her office on Friday. "Tourism must be an opportunity, not a threat - even for local communities. That's why we are focusing on organizing flows." Countries on the Mediterranean are at the forefront. Olympics-host France, the biggest international destination, last year received 100 million international visitors, while second-place Spain received almost 94 million - nearly double its own population. Protests have erupted across Spain over the past two years. In Barcelona, the water gun has become a symbol of the city's anti-tourism movement after marching protests have spritzed unsuspecting tourists while carrying signs saying: "One more tourist, one less resident!" People take part in a protest against mass tourism in Palma de Mallorca, Spain. AP The pressure on infrastructure has been particularly acute on Spain's Canary and Balearic Islands, which have a combined population of less than 5 million people. Each archipelago saw upwards of 15 million visitors last year. Elsewhere in Europe, tourism overcrowding has vexed Italy's most popular sites including Venice, Rome, Capri and Verona, where Shakespeare's "Romeo and Juliet" was set. On the popular Amalfi Coast, ride-hailing app Uber offers private helicopter and boat rides in the summer to beat the crowds. Greece, which saw nearly four times as many tourists as its own population last year, has struggled with the strain on water, housing and energy in the summer months, especially on popular islands such as Santorini, Mykonos and others. In Spain, anti-tourism activists, academics, and the government say that overtourism is driving up housing costs in city centers and other popular locations due to the proliferation of short-term rentals that cater to visitors. Others bemoan changes to the very character of city neighborhoods that drew tourists in the first place. In Barcelona and elsewhere, activists and academics have said that neighborhoods popular with tourists have seen local shops replaced with souvenir vendors, international chains and trendy eateries. On some of Greece's most-visited islands, tourism has overlapped with water scarcity as drought grips the Mediterranean country of 10.4 million. A view of the Parthenon temple in Athens, Greece. Reuters In France, the Louvre, the world's most-visited museum, shut down this week when its staff went on strike warning that the facility was crumbling beneath the weight of overtourism, stranding thousands of ticketed visitors lined up under the baking sun. Angelos Varvarousis, a Barcelona- and Athens-based academic and urban planner who studies the industry, said overtourism risks imposing a "monoculture" on many of Europe's hotspots. "It is combined with the gradual loss and displacement of other social and economic activities," Varvarousis said. Spain's government wants to tackle what officials call the country's biggest governance challenge: its housing crunch. Last month, Spain's government ordered Airbnb to take down almost 66,000 properties it said had violated local rules - while Barcelona announced a plan last year to phase out all of the 10,000 apartments licensed in the city as short-term rentals by 2028. Officials said the measure was to safeguard the housing supply for full-time residents. Elsewhere, authorities have tried to regulate tourist flows by cracking down on overnight stays or imposing fees for those visiting via cruises. In Greece, starting July 1, a cruise tax will be levied on island visitors at 20 euros ($23) for popular destinations like Mykonos and 5 euros ($5.70) for less-visited islands like Samos. The government has also encouraged visitors to seek quieter locations. To alleviate water problems, water tankers from mainland Greece have helped parched islands, and the islands have also used desalination technology, which separates salts from ocean water to make it drinkable, to boost their drinking water. Other measures have included staggered visiting hours at the Acropolis. Meanwhile, Venice brought back an entry fee this year that was piloted last year on day-trippers who will have to pay between 5 and 10 euros (roughly $6 to $12) to enter the city during the peak season. Associated Press
Business Insider
25-06-2025
- Business
- Business Insider
The world's richest people used to flock to the UK. Now, it's bleeding millionaires at a record rate.
The UK is poised to lose more millionaires in 2025 than any other country — a dramatic reversal for a nation long seen as a hub for the world's rich. According to the Henley Private Wealth Migration Report 2025, Britain is set to lose a record 16,500 millionaires this year — more than double the projected net outflow from China, which has held the top spot every year for the past decade. This marks the highest millionaire exodus ever recorded from any country since Henley & Partners and global wealth intelligence firm New World Wealth began tracking the data 10 years ago. "2025 marks a pivotal moment," says Juerg Steffen, CEO at Henley & Partners. "For the first time in a decade of tracking, a European country leads the world in millionaire outflows." He added that the move wasn't just about tax changes in the UK, but reflected a "deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere." "The long-term implications for Europe and the UK's economic competitiveness and investment appeal are significant," he said. A country losing on both fronts "Britain's appeal is waning — its global standing as a magnet for the world's wealthiest is being eroded by a combination of policy inaction and economic uncertainty," Stuart Wakeling, managing partner and head of Henley and Partners' UK office, told Business Insider. "The country is now uniquely positioned in the global migration landscape: losing on both sides of the ledger, with limited accessible pathways for inbound investor migrants while simultaneously experiencing record-breaking millionaire outflows," he said. The shift is part of a broader wealth migration trend, with 142,000 high-net-worth individuals (HNWIs) projected to relocate across borders in 2025. But the UK's position is uniquely stark. Since the 2016 Brexit referendum, Britain has steadily transformed from a haven for the rich to a launchpad for their departure. The October 2024 budget, the first under the newly elected Labour government, introduced sharp hikes in capital gains and inheritance taxes, and new rules targeting non-domiciled residents and family wealth structures took effect in April. Together, the changes have triggered a mass departure some analysts are calling "Wexit" — a wealth exit. Andrew Amoils, head of research at New World Wealth, told BI that roughly 60% of HNWIs leaving the UK in 2024 and 2025 are foreign-born. "Financial and professional services is the main sector for departing UK HNWIs — this includes banking, fund management, law firms, etc. Tech is also a big one," Amoils added. Southern Europe gains while Western Europe retreats The UK is not alone in its struggles. France, Spain, and Germany are also forecast to see net millionaire outflows this year, signalling a broader retreat from Western Europe. These outflows are set to be much less stark than the UK's, with France losing 800 millionaires, Spain 500, and Germany 400. Meanwhile, Southern European countries like Italy, Portugal, and Greece are emerging as new magnets for wealth, boosted by friendly tax regimes and lifestyle appeal. Italy is expected to add 3,600 millionaires this year, while Portugal and Greece will respectively add 1,400 and 1,200. Top destinations globally include the UAE, which is expected to attract 9,800 millionaires in 2025, retaining its position as the world's top wealth haven, followed by the US, which is set to gain 7,500. Switzerland remains a strong draw, adding 3,000 millionaires, while fast-rising wealth hubs such as Thailand and Montenegro are gaining ground. The UK, however, remains the only country among the world's 10 wealthiest nations to see negative millionaire growth since 2014, according to Trevor Williams, Chair and Co-founder at FXGuard and former Chief Economist at Lloyds Bank Commercial Banking. Over that same period, the US saw a 78% increase, making it the fastest-growing millionaire market in the 10 wealthiest countries by millionaire numbers, he said.
