Boom in Asia, Slow Recovery in the EU and Austria. Business Cycle Report of June 2010

While the economy has indeed stabilised after its deep slump from mid-2008 to mid-2009, the recovery has not yet gained traction. In the first quarter of 2010, Austria's economy stagnated compared with both the fourth quarter of 2009 (–0.1 percent) and the previous year (+0.2 percent). Stimulus was provided by exports to Germany, hence indirectly by buoyant economic growth in Asia and expanding world trade. Domestic consumer demand is rising at a steady, albeit moderate pace (+¼ percent, compared with the previous quarter). Investment on equipment and buildings has been declining for eight quarters; a self-sustaining recovery in investment has not got off the ground as yet. Labour market conditions are improving steadily. Consumer prices are rising, mainly as a result of price increases for commodities.