Sanguine Medium-Term Outlook for Austria's Economy

Favoured by Germany's economic unification and the creation of the internal market in the EC, economic activity in Austria is likely to grow at an annual rate of 3.2 percent from 1991 to 1995, with the current account more or less balanced. Substantial immigration into Austria will boost the supply of labour and raise the unemployment rate at first; a slight improvement in the labour market can be expected only toward the end of the forecasting period. Inflation will level off from its peak rate in 1991 to 3¼ percent in 1995.