Cyclical Upturn Set to Continue, With Risks Persisting. Economic Outlook for 2011 and 2012

The cyclical recovery of the Austrian economy continues. Exports and manufacturing benefit from the strengthening of global activity. Yet, the stimulus from abroad is only gradually being transmitted to domestic investment. The rebound of demand and output makes for an improvement on the labour market and of public finances. While the government deficit is set to narrow markedly, the unemployment rate will nevertheless stay high. WIFO projects GDP growth at 2.2 percent for 2011 and 2.0 percent for 2012.