In 2005, the global economy showed a solid, but regionally varied development.  While the economies in the USA and Asia continued to develop very strongly, Euroland’s economic activities were once again relatively modest.

The U.S. economy showed robust growth throughout the whole year.  As a result of this positive economic development and due to the strong increase in crude oil prices, the Federal Reserve Board (FED) increased key interest rates in several steps to 4.25% during the reporting period.  Damages resulting from the various hurricanes had no major impact on the U.S. economy.

In Euroland, economic development once again remained moderate in 2005.  Stagnant domestic demand due to political and structural problems in some EU member states, and high energy prices were the main burdening factors.

In Asia, economic growth remained very robust with China continuing its strong economic upturn.  The economy in Japan also showed signs of sustained economic upturn.