While economic growth was found to lose momentum in the course of 2007, the Austrian economy continued to expand at quite a vigorous pace until year-end. In the fourth quarter of 2007, real GDP rose at a seasonally and working day adjusted rate of 0.6 percent from the previous quarter. In business surveys, companies still assess the current business situation in Austria quite positively, whereas pessimism is mounting regarding future developments. A similar trend can be observed in Germany and the entire euro area. The ongoing appreciation of the euro is posing an ever-greater threat to Europe's export industry. Rising crude oil prices and substantial price increases for agricultural products kindle global inflation.