IDEAS home Printed from https://ideas.repec.org/a/wfo/wquart/y2005i4p127-137.html
   My bibliography  Save this article

Economic Growth Dampened by Oil Price Hike, but Exceeding the Euro Area Average. Economic Outlook for 2005 and 2006

Author

Listed:
  • Markus Marterbauer

    (WIFO)

Abstract

Growth of real GDP will amount to 1.7 percent this year, once more undershooting the long-term average by a substantial margin. The main retarding element is the high energy prices which will drive up the rate of inflation, while weighing on consumption of private households. Exports will keep a strong momentum after their jump in 2004. The WIFO business survey of last September suggests a pick-up in industrial confidence. However, investment in machinery and equipment has so far failed to respond and is unlikely to reach the level of last year. Since May first 2005, economic policy has taken a number of expansionary measures, such as an increase in off-budget spending on infrastructure, in outlays for research and development as well as for active labour market policy. These measures will slightly accelerate the pace of growth in 2006 to a rate just above the euro area average. The implicit budgetary burden will, however, make for some increase in the general government deficit.

Suggested Citation

  • Markus Marterbauer, 2005. "Economic Growth Dampened by Oil Price Hike, but Exceeding the Euro Area Average. Economic Outlook for 2005 and 2006," Austrian Economic Quarterly, WIFO, vol. 10(4), pages 127-137, November.
  • Handle: RePEc:wfo:wquart:y:2005:i:4:p:127-137
    as

    Download full text from publisher

    File URL: http://www.wifo.ac.at/wwa/pubid/25785
    File Function: Abstract
    Download Restriction: Payment required

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    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:wfo:wquart:y:2005:i:4:p:127-137. 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). General contact details of provider: http://edirc.repec.org/data/wifooat.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.