Economy Stabilising after Slight Dip in Growth at the End of 2011. Business Cycle Report of March 2012

Austrian GDP contracted moderately in the fourth quarter of 2011. The slower pace of growth was largely due to weak global economic activity and the associated decline in international capital and trade flows. The high macro-financial risks persist. The ECB implemented measures aimed at restoring confidence in financial markets. Global economic activity again picked up slightly at the beginning of the year. This stabilisation is supported by the USA, but notably by the emerging economies. However, the outlook for global growth continues to be subject to downside risks owing to the European sovereign debt crisis.