Stabilisation of Global Economy in Sight

The global economic situation eased in the second quarter, following the strong contraction in the last half-year. The USA and the euro area saw GDP shrink at a markedly slower pace compared to the two preceding quarters. The Austrian economy also contracted by a mere 0.4 percent in real terms quarter-on-quarter in the second quar-ter of 2009 (after –2.7 percent in the first quarter). Confidence indicators suggest the situation will improve further during the third quarter. Global economic conditions are nevertheless likely to remain fragile for a protracted pe-riod of time. Excess capacity, high unemployment rates and uncertain corporate financing conditions dampen the prospects for a quick lasting recovery and will lead to a sequence of positive and negative news in the coming weeks.