Global Economic Boom Gradually Spreading to the Euro Area and to Austria. Economic Outlook for 2004 and 2005

Growth of GDP is set to attain 1.7 percent this year. Notably demand from Germany has picked up significantly over the last few months. Assuming that the moderate recovery in the euro area will continue, growth may accelerate to 2.5 percent next year, providing incentives also for private consumption. Employment will be stimulated by stronger growth. Despite the cyclical recovery, special factors will nevertheless prevent unemployment from falling and drive the government deficit upwards.