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Euro Area in Temporary Recession. Economic Outlook for 2012 and 2013

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Author Info

  • Marcus Scheiblecker

    (WIFO)

Abstract

The euro area economy is currently in recession. By the middle of the year, however, economic activity is expected to head up again, even if the recovery promises to be subdued given the fiscal restraint in many countries. While the export-oriented sector in Germany and Austria continues to receive stimulus from economies outside Europe, it will nevertheless be affected by sluggish euro area growth. Real GDP in Austria is likely to edge up by 0.4 percent in 2012. Growth in 2013 should strengthen to 1.4 percent, driven by foreign demand, but dampened by fiscal consolidation. The rise in oil prices will prevent a speedy decline in inflation.

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Bibliographic Info

Article provided by WIFO in its journal WIFO-Monatsberichte.

Volume (Year): 85 (2012)
Issue (Month): 4 (April)
Pages: 223-236

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Handle: RePEc:wfo:monber:y:2012:i:4:p:223-236

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Related research

Keywords: Konjunkturprognose Österreich;

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