Do you think Europe’s economic activity only affects Europeans? Greece’s economic crisis, fueled by a long spending spree, resulted in mountains of debt that has quickly spread across Europe as other countries come to Greece’s aid. But the ripple effect does not end there. Europe’s economic crisis has affected employment rates, trade activity, interest rates, and stock prices in other countries across the globe.
Economic downturns do not happen overnight: signs of trouble exist before a nation or continent’s economy is in crisis. Managers at all levels of a company must monitor economic indicators both domestically and internationally as well. Consumer confidence, gross domestic product, inflation, government spending, exports and imports, interest rates, and unemployment rates can give you insight to a nation’s financial health. Failing to monitor these macroeconomic events can result in your company missing potential threats and opportunities.
The European Commission provides daily, weekly, monthly, and annual economic statistics for much of Europe. These include the Economic Sentiment Indicator to provide an overview of the economy, capacity utilization and gross fixed capital formation to show the strength of the manufacturing sector, and retail sales to show the strength of the retail industry. The Harmonised Index of Consumer Prices and the GDP deflator provide the overall level of prices in the economy. The employment rate and unemployment rate show the strength of the labor market, and exports and imports show the level of trade. Interest rates provide the cost of borrowing, and exchange rates show the strength of specific currencies. Your ability to recognize the effects of these statistics on your industry can help your company identify potential problems.
Do you know how to interpret and analyze European economic indicators and apply them to your business? The Accenture Academy course Analyzing European Economic Indicators will introduce you to interpreting the economic indicators provided by the European Commission and explain how you can apply them to business decision and planning. You will practice your European indicator analysis skills through case studies so what happens in Europe doesn’t affect your business.