Figure 1 displays the different patterns of how the GDP output gap developed in six euro area Member States since 2010. While Germany remained relatively stable after the peak of the sovereign debt crisis in Europe, Austria, Italy, Portugal, and Greece produced goods and services far below their potential GDP estimates, albeit to a differing degree.
In 2012, the output gap in Austria was -0.94% but -3.89% in Italy, -6.99% in Portugal and -12.6% in Greece. The development in Ireland illustrates the same downward trend up until 2013, but a more rapid recovery thereafter.
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