The year 2004 was characterized by a global economic recovery, with the US showing a much faster and sustained growth than Euroland.

According to preliminary figures, Gross Domestic Product (GDP) of the USA grew at an annualized rate of 4.6% in 2004.  Although economic growth was primarily based on consumption of private individuals, who contribute approximately two-thirds of total economic spending, the economic upturn was also somewhat based on increased capital expenditures by corporations.  Due to this economic development, the Federal Reserve Board (the FED) increased key interest rates in several steps from 1% at the beginning of January to 2.25% by the end of the year.

The economy in Euroland developed in a similar fashion, although much more moderately.  GDP grew by approximately 1.8% compared to 2003.  Continued weak domestic demand and the rise of the Euro against the US dollar, which dampened export activities, were the main burdens to growth.  

China’s economy continued its strong growth shown during the last few years also in 2004.  The measures of the Chinese government to slow down over-investment in some economic sectors, e.g. in the steel or cement industries, have shown the desired effects, with the risk of overheating clearly reduced.  Nevertheless, overall economic growth of China remained very substantial during the reporting year.