Cyclical Split

Up to the end of 1991 Austria has to a remarkable extent been spared from the international economic recession. The differential in the pace of activity between "exposed" and "sheltered" sectors has even widened. Buoyancy of retail sales, construction and tourism continues unabated while the downward trend of exports and industrial output has recently levelled off. However, continued sluggishness abroad suggest further slowdown in coming months. Because of export growth lagging behind that of domestic demand the current account surplus is diminishing rapidly. Despite the fall in raw material prices and lower pressure from labour costs inflation has hardly eased from its 3¼ percent anuual rate.