Overall, the development of the global economy in 2007 was robust, thanks to the dynamic growth of emerging economies in Asia, most notably China, although trends varied significantly from region to region. Economic growth in the eurozone of 3 % was largely a consequence of high levels of investment and exports. Despite the slowing of the US economy in the second half of 2007 as a result of the subprime crisis, forecasts suggest that the damper on global economy growth will be only temporary, thanks to the sustained healthy growth of the Asian, Latin American and Eastern European markets. Economic growth of 2.4 % is forecast for the eurozone in 2008.

The Austrian economy was flying high in 2007, with growth of 3.4 %. The positive performance of global markets, booming exports and the strong standing of Austrian companies in the rapidly growing markets of Southern and Eastern Europe made a significant contribution to this outcome. The Italian economy grew by 1.9 % in 2007, holding its previous year’s level but well below the EU average. Growth was chiefly attributable to strong domestic demand, which was driven by the increased household spending unleashed by tax cuts. A combination of high levels of investment, strong exports and healthy domestic demand saw the Slovenian economy continue the trend of recent years with growth of some 6 % in 2007. At 6 % Croatia also recorded extremely vigorous growth on the back of climbing industrial production and a rise in household spending. Tourism also grew steadily, and has emerged as one of the most important sectors of the economy, attracting investment and generating jobs. The programme of reforms in Bosnia and Herzegovina introduced in recent years continued to yield results, with inflation held at low levels and the national budget balanced. With annual growth of 5.5 %, Bosnia and Herzegovina joined the European Free Trade Association (EFTA) in September 2007. A series of privatisations, mostly in the energy sector provided the economic backdrop in Serbia during last year. Economic growth of 7.5 % was chiefly attributable to investment in local infrastructure. In Germany, the preliminary figures released by the Federal Statistical Office indicate real GDP growth of 2.5 % in 2007. Significant gains were recorded particularly by industry, trade, tourism, transport and financial services. The Montenegrin economy made good progress in the country’s first year of independence, against the backdrop of a rigorous program of political and economic reforms. On 18 January 2007 Montenegro joined the World Bank and the International Monetary Fund. Tourism is the key to the future development of the nation’s economy, which grew some 6 % in 2007. Bulgaria also clearly outperformed the EU average in 2007, with a rise of 6.3 %. This positive development is linked to increased household spending and accelerated investment activity. In Hungary economic growth declined from 3.9 % in 2006 to 2 % in 2007 – this development chiefly reflects the impact of the government’s restrictive fiscal and monetary policy. Forecasts, however, point towards rapid recovery of domestic demand, which has traditionally been a mainspring of the Hungarian economy.

On the international stock markets, the financial year was shaped by sustained advances throughout the first half of the year and collapses in July and November.