The recovery of the eurozone periphery: Structural growth or cyclical momentum?
Eurozone periphery
Fecha: marzo 2025
José Manuel Amor, Camila Figueroa and María Romero
SEFO, Spanish and International Economic & Financial Outlook, V. 14 N.º2 (March 2025)
Once heavily impacted by the EMU sovereign debt crisis, the economies of southern Europe, or the peripheral countries, have shown significant economic resilience in recent years, growing faster than the bloc´s largest economies. While this momentum has been partially driven by post-pandemic recovery and external factors like energy market shifts, structural improvements –including labour market reforms, banking sector restructuring, and fiscal adjustments– have played a key role in narrowing the gap with core eurozone peers. Foreign investment flows and sovereign risk premiums reflect renewed investor confidence in the periphery, reinforcing the perception that these economies have gained stability. However, sustaining this convergence will depend on continued productivity gains and the ability to withstand global economic uncertainties.