Global Economic Downturn Persists
Gerhard Fenz (),
Ingrid Haar-Stöhr () and
Additional contact information
Gerhard Fenz: Oesterreichische Nationalbank, Economic Analysis Divison, http://www.oenb.at
Ingrid Haar-Stöhr: Oesterreichische Nationalbank
Monetary Policy & the Economy, 2008, issue 3, 6–20
The global economic downturn is persisting. In the U.S.A., tax rebates provided only a temporary stimulus to the economy. As the U.S. real estate crisis continues, it triggered the takeover of mortgage finance corporations Fannie Mae and Freddie Mac by their regulator in early September 2008. The crisis of the U.S. real estate and financial sectors, which has gathered momentum lately, sustained high commodity prices and the deterioration in the labor market are all badly damaging consumer confidence. As a reaction to the most recent aggravation of the financial crisis, the U.S. government announced its plan to establish a well-endowed stabilization fund. As to the euro area, economic growth slowed unexpectedly sharply in the second quarter of 2008. Real GDP contracted by 0.2% quarter on quarter. Particularly, gross fixed capital formation made a negative contribution to growth, but also consumer restraint depressed economic performance. The ECB’s current projections assume only a gradual improvement in the economy.
Keywords: global outlook; euro area; central and (south-)eastern Europe; Austria (search for similar items in EconPapers)
JEL-codes: E2 E3 O1 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.oenb.at/dam/jcr:e2d48245-68d4-4d32-910 ... ktur_tcm16-92351.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:onb:oenbmp:y:2008:i:3:b:1
Ordering information: This journal article can be ordered from
Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria
Access Statistics for this article
Monetary Policy & the Economy is currently edited by Doris Ritzberger-Gruenwald and Ernest Gnan
More articles in Monetary Policy & the Economy from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Claudia Kwapil ().