IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Marked Slowdown of Growth in Europe Dampening Domestic Business Activity. Economic Outlook for 2001 and 2002

Listed author(s):
  • Markus Marterbauer

    (WIFO)

Economic growth in Austria in 2001 is projected at 1.7 percent, half the rate attained last year. The marked slowdown in the pace of activity mirrors the weakening of the European business cycle. With growth in the USA having virtually come to a halt, the upward trend of European exports has become much flatter. In addition, higher energy prices are eroding consumer purchasing power. The expansion of merchandise exports, manufacturing output, machinery and equipment investment and wholesale trade in Austria is being dampened to a significant extent. Construction output is also sluggish due to lack of demand. Private household consumption, however, is stabilising the business cycle, despite some decline in real disposable income. Inflation is proving more stubborn than assumed still a few months ago. Headline inflation could rise to 2.6 percent this year, before abating to 1.9 percent in 2002. Slower growth is clouding the outlook for the labour market. Unemployment is unlikely to fall further and may remain around a total of 190,000. Whether in 2002 the aimed-for balance in the general government account will actually be achieved, will not only depend on business cycle developments, but also on the recognition by Eurostat of fiscal operations whereby a number of public sector activities have been moved "off budget".

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.wifo.ac.at/wwa/pubid/20434
File Function: Abstract
Download Restriction: Payment required

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by WIFO in its journal Quarterly.

Volume (Year): 6 (2001)
Issue (Month): 3 (July)
Pages: 102-111

as
in new window

Handle: RePEc:wfo:wquart:y:2001:i:3:p:102-111
Contact details of provider: Postal:
Arsenal Object 20, A-1030 Wien

Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wfo:wquart:y:2001:i:3:p:102-111. 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: (Ilse Schulz)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.