VIENNA - The overall economic recovery of the European Union will take time due to unbalanced performances among its member countries, an Austrian economist said Wednesday.
High unemployment and debt plagued many EU countries. Greece, Ireland, Portugal and Spain have adopted restrictive budget policies and raised taxes, said Markus Marterbauer from the Austrian Institute of Economic Research.
"The result is a reduction of budget deficit, but also a considerable loss of aggregate demand and thus initially deepens recession," he said in a research report.
Several countries in southern and western Europe are struggling with troubles in the real estate market as well as reduced industrial competitiveness, according to the report.
The side effects of tightened budget policies been reflected mainly by high unemployment, especially among young people.
Material export-oriented countries, such as Germany, the Netherlands, Austria and the Scandinavian countries, benefited from rising foreign demand and saw their unemployment rates drop, Marterbauer said.
The economist said that, although the EU countries are escaping the economic crisis, overall improvement will be inhibited due to the diverse rate of growth among the member nations.
In 2011 and 2012, the growth rate of the EU economy was expected to be only 1.75 percent while it would be merely 1.5 percent in the euro zone.
The report also predicted that the actual growth rate of the world economy this year and next would reach 4 percent due to sound momentum in Asia.
The development of Asia's economy has stimulated exports to other regions and injected more vitality to investment and consumption demand.
Marterbauer also expressed concern of restrictive policy and high inflation in some Asian countries. He believed that the rapid rise of international prices of raw materials would impose pressure on Asia's economy. (Xinhua)