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Measures of Cyclical Stabilisation Showing Early Effects. Economic Outlook for 2009 and 2010

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  • Marcus Scheiblecker

    (WIFO)

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    Abstract

    The global slump in business activity is leaving deep traces in the Austrian economy. On the back of a steep fall in exports and domestic investment, real GDP is set to fall by 3.4 percent in 2009, with private consumption as the only stabilising component. The measures taken worldwide in response to the crisis are showing first effects. The decline of demand and output in the euro area should give way to stagnation as from the middle of the year. This is also expected for Austria, allowing growth to resume by a modest 0.5 percent in 2010. On the labour market, the adverse trend will extend into next year, with further job losses accompanied by a rise in unemployment.

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    Bibliographic Info

    Article provided by WIFO in its journal Quarterly.

    Volume (Year): 14 (2009)
    Issue (Month): 3 (July)
    Pages: 124-134

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    Handle: RePEc:wfo:wquart:y:2009:i:3:p:124-134

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