IDEAS home Printed from https://ideas.repec.org/a/onb/oenbmp/y2006i1b1.html
   My bibliography  Save this article

Economic Outlook Improves in Euro Area – Inflation Pressure Persists Due to High Energy Prices

Author

Listed:

Abstract

The world economy is chugging along, but its key engines may be changing. While the economies of the U.S.A. and China have reached more mature levels, economic activity is now gradually gaining momentum in Europe and Japan. In Austria, economic growth over the year 2005 clearly regained momentum after a substantial but temporary slowdown in late 2004 and early 2005.Whereas previously economic growth was mainly driven by exports, it is now increasingly supported by domestic demand, too. Already in the second half of 2005, Austrian businesses visibly stepped up their investment activities, while recovery in consumer spending has been more hesitant. According to the OeNB's economic indicator, growth in Austria's real GDP (seasonally adjusted, compared to the previous quarter) will jump to 0.8% in both the first and second quarters of 2006. Despite high energy prices, inflation has abated considerably, thus supporting the real purchasing power of households. Finally, employment has risen, but the rate of unemployment remains elevated nonetheless.

Suggested Citation

  • Andreas Breitenfellner & Gerhard Fenz & Thomas Reininger, 2006. "Economic Outlook Improves in Euro Area – Inflation Pressure Persists Due to High Energy Prices," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 6-23.
  • Handle: RePEc:onb:oenbmp:y:2006:i:1:b:1
    as

    Download full text from publisher

    File URL: https://www.oenb.at/dam/jcr:5b3bdc4b-37f2-49a0-b30a-2a8fa879064e/mop_2006_q1_analyses01_tcm16-42102.pdf
    Download Restriction: no

    More about this item

    Keywords

    economic developments; global outlook; euro area; central and (south-)eastern Europe; Austria;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:onb:oenbmp:y:2006:i:1:b:1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudia Kwapil). General contact details of provider: http://edirc.repec.org/data/oenbbat.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.