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Stable Development of Austrian Economy Despite Persistent Debt Crisis. Business Cycle Report of May 2012


  • Christian Glocker



The recovery of the global economy continued in spring, but is highly fragile. The central risks on the one hand stem from geopolitical tensions that could trigger another rise in oil prices, and, on the other hand from the sovereign debt crisis in the euro area. In addition, the strict consolidation policy in the euro area contributes considerably to the subdued economic prospects. The outlook for the Austrian economy is more favourable. On the one hand, financial market risks have diminished especially over the last few months. Both the secondary market yields on Austrian government bonds and the interest rates for corporate loans fell yet again in March. On the other hand, employment rose markedly also in April.

Suggested Citation

  • Christian Glocker, 2012. "Stable Development of Austrian Economy Despite Persistent Debt Crisis. Business Cycle Report of May 2012," Austrian Economic Quarterly, WIFO, vol. 17(2), pages 122-131, July.
  • Handle: RePEc:wfo:wquart:y:2012:i:2:p:122-131

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    References listed on IDEAS

    1. Graciela Kaminsky & Sergio L. Schmukler, 2002. "Emerging Market Instability: Do Sovereign Ratings Affect Country Risk and Stock Returns?," World Bank Economic Review, World Bank Group, vol. 16(2), pages 171-195, August.
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    7. James M. Poterba & Kim Rueben, 1999. "State Fiscal Institutions and the U.S. Municipal Bond Market," NBER Chapters,in: Fiscal Institutions and Fiscal Performance, pages 181-208 National Bureau of Economic Research, Inc.
    8. Andrew Powell & Juan F. Martinez S., 2008. "On Emerging Economy Sovereign Spreads and Ratings," Research Department Publications 4565, Inter-American Development Bank, Research Department.
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