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

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  • Marcus Scheiblecker

    (WIFO)

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    Abstract

    Demand and output in the euro area receded at the end of 2011. While the "soft patch" of the recovery should be overcome by the middle of 2012, the momentum of growth will remain modest due to the drive for fiscal consolidation across Europe. Real GDP in the euro area is likely to edge down by 0.2 percent this year, before rebounding by 1.3 percent in 2013. The highly export-oriented economies of Germany and Austria will benefit to an above-average extent from demand from non-European regions. As a consequence, the Austrian economy is projected to grow by 0.4 percent this year, accelerating to 1.4 percent in 2013. Labour market conditions are likely to weaken throughout the forecast period.

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    Bibliographic Info

    Article provided by WIFO in its journal Quarterly.

    Volume (Year): 17 (2012)
    Issue (Month): 2 (May)
    Pages: 69-80

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    Handle: RePEc:wfo:wquart:y:2012:i:2:p:69-80

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    Keywords: Economic Outlook Austria;

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