According to the latest forecast made by the international Euroframe group, of which WIFO is a member, the GDP in the euro zone will decline by 0.4 percent in 2009, and a low growth rate of 0.5 percent is expected for 2010. It will take until 2011 for the economy to return to modest growth (+1.6 percent). The USA, UK and Japan are similarly expected to experience a decline of their real GDP. A model simulation indicates that an expansive fiscal policy which is internationally coordinated could do better in alleviating the slump than could measures taken by each individual country.