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High Euro Exchange Rate Weighing on Cyclical Recovery. Economic Outlook for 2005 and 2006

Author

Listed:
  • Ewald Walterskirchen

    (WIFO)

Abstract

Driven by buoyant exports, the Austrian economy grew by around 2 percent in 2004. For 2005 and 2006, growth is projected at an annual 2¼ percent, boosted in 2005 by the second step of tax cuts, and by some pick-up in the pace of activity in the euro area in 2006. Major uncertainty surrounds the exchange rate of the euro, where a further upward drift may drag down the cyclical recovery in the euro area.

Suggested Citation

  • Ewald Walterskirchen, 2004. "High Euro Exchange Rate Weighing on Cyclical Recovery. Economic Outlook for 2005 and 2006," WIFO Economic Outlook, WIFO, number 25397, December.
    • Handle: RePEc:wfo:wkprog:25397
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    File URL: https://www.wifo.ac.at/wwa/pubid/25397
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    Keywords

    WIFO Economic Outlook;

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