Unsolved Problems in European Monetary Union Weighing on Austrian Economy

Economic activity lost momentum globally and especially in the euro area over the course of 2011. In the euro area, economic indicators point to persistent stagnation in the first half of 2012. This development is also weighing on the Austrian economy. However, signs are also emerging that it may be stabilising. Nevertheless, the Austrian economy is unlikely to grow in the first quarter. Labour market conditions remain bleak, reflecting the subdued development. Inflation, by contrast, is receding.