Southern European nations, once the subject of economic skepticism, are now leading the eurozone’s recovery with remarkable turnarounds, according to Blomberg.
Business surveys from March show Greece along with Spain and Italy surpassing growth expectations, contributing to the euro area’s rebound from a prolonged period of contraction.
The rebound, according to Bloomberg, is attributed to tourism, a boom in exports, and energy strategies that have eased-off reliance on Russian gas– all factors that have positioned Southern Europe on a path of fiscal stability. The positive outlook for Greece and its southern neighbours comes as France has moved to downgrade its growth forecast, grappling with a budget deficit and spending cuts. Germany, also, is marked by consumer hesitation and weak external demand contributing to its economic woes.
Investors, reports Bloomberg, are taking note. Firms like Vanguard Asset Management and JPMorgan Asset Management have moved to invest heavily in southern European bonds, capitalizing on a rally that has narrowed the yield gap with northern counterparts.