Austria's Economy Still Stagnating

Austria's economy stagnated yet again in the first quarter of 2013, with neither external nor domestic demand providing stimulus. Inflation receded recently, while the seasonally adjusted unemployment rate remained consistently high at 7.5 percent. Global economic developments are highly uneven: Japan is implementing massive monetary and fiscal policy measures to stimulate the economy and overcome deflation. The yen depreciated sharply, and net exports increased. The recovery in the USA continues, although the drop in the unemployment rate has been accompanied by a decline in the labour force participation rate. The ongoing recession in many European countries, among them many key Austrian markets, provides negative stimulus, however.