In its report regarding the annual analysis of the best-performing economies in 2024, the Economist highlights the countries in the South Mediterranean placing them in the top five positions. The analysis indicates that Spain, Italy, and Greece, once emblematic of the Eurozone’s struggles, have now become symbols of strong recovery.
In a complex international environment, with interest rates at their highest levels in decades, wars raging in Europe and the Middle East, and elections taking place in numerous countries, the global economy managed to achieve another strong performance in 2024.
The Economist compiled data on five economic and financial indicators—GDP, stock market performance, core inflation, unemployment, and government deficits—for 37 predominantly wealthy countries.
The Mediterranean rally continues for a third consecutive year, with Spain topping this year’s list. Greece and Italy, once emblematic of the eurozone’s struggles, are continuing their strong recovery. Ireland, which has attracted many technology companies, and Denmark, home to Novo Nordisk’s Ozempic, round out the top five.
Meanwhile, Northern European countries disappoint, with sluggish performances from the United Kingdom and Germany. The Baltic duo of Latvia and Estonia is at the bottom, a position they also held in 2022.
Israel emerged as another standout case regarding best-performing economies, according to OECD data, as its strong growth largely reflects a rebound from the sharp contraction in the last quarter of 2023, when its war with Hamas began.
In Spain, the annual GDP growth rate is on track to exceed 3%, driven by a robust labor market and high levels of immigration, which boost economic output.
The Economist’s collected data highlights that while global inflation has declined significantly, service prices remain high in many countries. Britain and Germany experience such pressures due to wage increases, while Australia is faced with the high cost of accommodation.
In contrast, Switzerland and France have managed to keep prices under control with core inflation standing below 2%.
Another economic index that surprisingly remains robust despite the pressures of the global environment is unemployment. An example is Southern Europe which despite still having high rates of unemployment is showing signs of recovery. Indicative of this is the fact that unemployment in Greece, Italy and Spain has fallen to its lowest level in a decade.
