News / Economy

    Europe’s Economic Crisis Hits Developing Countries

    Al Pessin

    The European economic crisis is having an impact around the world, and causing concern that if it is not ended soon it could spread to a variety of countries that depend on Europe to buy their exports.  

    Many developing countries live or die economically on the strength of their exports.  Whether it is workers in India making auto parts, or those developing software, coffee plantation workers in Laos, or carpet weavers in Egypt - all have one thing in common.  Their most important buyers are people in Europe and other developed regions.

    “For most of the countries, the European Union is one of the most, if not the most, important business partners for trade, for investment, for imports and exports,“ said Philippe de Buck, director general of BUSINESSEUROPE, an organization of European chambers of commerce.

    But as Europe’s financial crisis forces governments to cut their budgets, and slows economic activity, many consumers have less to spend.  And that is having a ripple effect around the world.

    Even a big economy like China is not immune from Europe’s problems.  The port of Shanghai is a major gateway for the country’s products, but the government announced that its meteoric growth in exports slowed in September due to a drop in demand from Europe and the United States.

    Economics researcher Zolt Darvas at the Bruegel research organization in Brussels says low demand will likely continue for several years in some European countries, and maybe for longer.

    “The impact will largely depend on whether the European financial crisis will be contained or whether it will escalate," Darvas said.  "If it will escalate and Europe ends in a deep recession, certainly the impact in the rest of the world, not just on emerging countries, but also on the U.S. and other advanced countries, may be very, very adverse.”

    But former EU economics official Mario Monti notes that the continent still has several strong economies, and he says overall the problem may not be as bad as it appears.

    “Of course, there is a huge combined banking and public budget crisis in several eurozone member states," he said. "However, if we take the eurozone as an aggregate, the problem is smaller than it is in the U.S., in the U.K. or in Japan.”

    Monti believes relative economic strength in some areas will help Europe work its way out of the current crisis over time.  

    But that may be small consolation for those who depend on the continent to be a strong market for their products and services.

    You May Like

    South Sudan Sends First Ever Official Olympic Team to Rio

    VOA caught up with Santino Kenyi, 16, one of three athletes who will compete in this year's summer games in Brazil

    Arrest of Malawi's 'Hyena' Man Highlights Clash of Ritual, Health and Women's Rights

    Ritual practice of deflowering young girls is blamed for spreading deadly AIDS virus

    Immigrant Delegate Marvels at Democratic Process

    VOA finds things Americans take for granted are special to foreigners

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Immigrant Delegate Marvels at Democratic Processi
    X
    Katherine Gypson
    July 27, 2016 6:21 PM
    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video A Life of Fighting Back: Hillary Clinton Shatters Glass Ceiling

    Hillary Clinton made history Thursday, overcoming personal and political setbacks to become the first woman to win the presidential nomination of a major U.S. political party. If she wins in November, she will go from “first lady” to U.S. Senator from New York, to Secretary of State, to “Madam President.” Polls show Clinton is both beloved and despised. White House Correspondent Cindy Saine takes a look at the life of the woman both supporters and detractors agree is a fighter for the ages.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video First Time Delegate’s First Day Frustrations

    With thousands of people filling the streets of Philadelphia, Pennsylvania for the 2016 Democratic National Convention, VOA’s Kane Farabaugh narrowed in on one delegate as she made her first trip to a national party convention. It was a day that was anything but routine for this United States military veteran.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.9093
    JPY
    USD
    104.27
    GBP
    USD
    0.7612
    CAD
    USD
    1.3233
    INR
    USD
    67.329

    Rates may not be current.