Monday, 22 July 2013

Resilience Map of the EU

Resilience is reflects the capability of a system to withstand shocks and extreme events.Based on macro-economic data provided on a quarterly basis by Eurostat, we measure the resilience of the EU member states. The result is illustrated in the map above, where one may see that the most resilient countries are the UK, Italy and Sweden.

In the economy, high resilience does not necessarily imply high performance. It simply measure a sort of "stability" of a system functioning in a turbulent regime. The economy of Germany, for example, performs better than that of Italy but is less resilient. This means that is more fragile and vulnerable in the case of extreme events, shocks or contagion. It may sound counter-intuitive but there are many examples of systems that perform very well and yet are very unhealthy. Think, for example, of medicine. One may be climbing Mount Everest and be gravely ill. Fragility - the opposite to resilience - is an invisible characteristic if one concentrates only on performance. Resilience, therefore, must become a new and strategic KPI of a modern business.

More details on resilience may be found here.

The list of resilience values per country is available here.