Booming world economy to boost Europe, says WIFO

Europe’s economies will strongly benefit from thriving world markets, a leading think tank has claimed.Vienna’s Institute for Economic Research (WIFO) announced today (Fri) that the global economy will have grown by 4.4 per cent year on year in 2010 and by around 4.1 per cent the following year before a 4.6 per cent improvement is expected for 2012.”Europe can be happy about the dynamic global economy,” WIFO said. The institute said that the federal economies of the European Union’s (EU) 27 member states will just do 1.7 per cent better year on year in 2010 whereas Germany’s economy will improve by two to 2.5 per cent.WIFO warned that the competitive power of the Eurozone, the EU’s 16 members which use the Euro as their currency, will be negatively affected by the “drastic cost-cutting measures” in countries in south-eastern Europe as well as in Ireland.China’s economy will, however, soar by nine per cent year on year in the coming two years, according to WIFO.The gross domestic product (GDP) of Russia, which is also considered as one of the world’s emerging markets alongside Brazil and India (BRIC countries), will increase by 4.5 per cent in the coming two years after a four per cent year on year improvement in 2010.WIFO explained Austria’s GDP will grow by two per cent year on year in 2010 and 2011 before suffering a two per cent decline in 2012.The think tank explained Austria will especially benefit from its recovering trade sector as the value of exports is expected to rise by 12 per cent this year compared to 2009. Germany, Europe’s economically strongest nation, has been the main import and export partner of Austria for many years.