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Upswing with Stronger Momentum, but Subject to Higher Risks. Economic Outlook for 2011 and 2012

  • Stefan Ederer


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    The cyclical upswing in Austria continues. Driven by the swift expansion of global activity, exports are posting strong gains. Meanwhile, the momentum is being transmitted to private investment which is set to rise substantially over the forecast period. Short-term indicators suggest that the positive trend will persist in the first half of 2011 before moderating somewhat in parallel with developments abroad, under the impact of rising commodity and energy prices and a more restrictive policy stance in both the industrialised and the emerging economies. Further ahead, demand and output growth is set to regain momentum. For Austria, WIFO expects GDP to increase by 2.5 percent in 2011 and 2.0 percent in 2012. The major risk for the upswing currently derive from the drift in commodity and energy prices which may have a substantial impact on the world economy.

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    Article provided by WIFO in its journal Quarterly.

    Volume (Year): 16 (2011)
    Issue (Month): 2 (May)
    Pages: 66-77

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    Handle: RePEc:wfo:wquart:y:2011:i:2:p:66-77
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