Cyprus is the outlier of troubled European economies

As we've been poking fun at the 'uniqueness' of Cyprus, economist Lars Christensen has found evidence that perhaps Cyprus is an outlier. He's looked at Nominal GDP (NGDP) figures:

I think it is really simple – the countries in the euro zone which are in the biggest trouble – risk of sovereign default and potential banking crisis – are the countries that have seen the largest drop in nominal GDP since 2008. The graph below illustrates this very well. It shows the relationship between the change in NGDP from 2007 to 2012 and the change in public debt ratios (debt/NGDP) in the same period. Surprise, surprise the countries that have seen the biggest increase debt ratios happen to be the PIIGS and those are also the countries that have seen the biggest drop in NGDP during the same crisis.

But notice Cyprus. Cyprus hasn’t really seen a major drop in NGDP and the increase in the debt ratio is not alarming.

(Market Monetarist)

So maybe Cyprus is unique after all. It appears that most of its troubles are related to banking, not sovereign debt. Lars does point out that we should however be concerned that Slovenia fits the trend of bad economies. Cyprus may be unique, but there's still a lot of other bad news in the Eurozone with Portugal, Italy, Ireland, Greece, Spain and Slovenia looking pretty weak.