At the Economic Office of PwC we regularly map the macroeconomic developments in Europe. In our newest Europe Monitor we have a closer look at the economic developments in 2020.
What does the future hold for Europe? We try to answer that question in our European Economic Outlook 2020. At a time when stagnation seems ever more likely in developed economies, a focus on economic growth and other key macroeconomic metrics persists, albeit with much more nuanced views on what these metrics should capture. This rethink of key macroeconomic metrics – such as gross domestic product and inflation – follows from the acknowledgement that we now live in a different or new economy.
With aging resulting in a constantly decreasing supply of labour and a higher old-age dependency ratio, the answer seems to lie in investing in productive capabilities and in untapping the potential of technological innovation. Investment in fixed capital, R&D spending, and the containment of waste and pollution externalities are key.
© 2015 - 2020 PwC. PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.