The recovery of the global economy continued in spring, but is highly fragile. The central risks on the one hand stem from geopolitical tensions that could trigger another rise in oil prices, and, on the other hand from the sovereign debt crisis in the euro area. In addition, the strict consolidation policy in the euro area contributes considerably to the subdued economic prospects. The outlook for the Austrian economy is more favourable. On the one hand, financial market risks have diminished especially over the last few months. Both the secondary market yields on Austrian government bonds and the interest rates for corporate loans fell yet again in March. On the other hand, employment rose markedly also in April.