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Business Activity Keeping Strong Momentum – Slowdown Expected Only in 2008. Economic Outlook for 2006 to 2008

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  • Marcus Scheiblecker

    (WIFO)

Abstract

Business surveys for the euro area point to continued strong cyclical activity in 2007. If GDP growth is nevertheless to turn out slightly lower than in 2006, it is entirely due to a number of positive one-off factors fading out. A cyclical slowdown is only expected for 2008, with the strong euro weighing on export growth. The labour market is benefiting from the lively business activity, leading to healthy employment gains and a decline in unemployment.

Suggested Citation

  • Marcus Scheiblecker, 2007. "Business Activity Keeping Strong Momentum – Slowdown Expected Only in 2008. Economic Outlook for 2006 to 2008," Austrian Economic Quarterly, WIFO, vol. 12(1), pages 1-10, January.
  • Handle: RePEc:wfo:wquart:y:2007:i:1:p:1-10
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