Economic Survey 3-2010

An expansionary policy designed to combat the economic downturn ensuing from the fi nancial crisis has created fi scal defi cits in many countries. Many European countries have therefore signalled fi scal tightening to achieve or maintain policy credibility so that fi nancing costs do not become too high. This tightening has probably had little eff ect on the macroeconomic indicator fi gures observed so far, but the eff ects will be more pronounced going forward. The recent high growth fi gures for some EU countries therefore cannot be taken as an indication of a robust economic recovery. Developments in the USA are weaker than last winter. The burgeoning upturn we saw then may have given way to a new downturn. In Asia, too, growth is slowing, but on the whole from high growth rates.