Slow Economic Upturn Following Growth Setback in 2012. Medium-term Forecast of the Austrian Economy until 2016

During the forecast period 2012-2016 growth will be weaker than in the recent past. On average real GDP is expected to increase by 1.6 percent per year. Thus, the Austrian economy will expand at a slower pace than on average during the years preceding the financial and economic crisis. The cyclical slowdown already became apparent during the second half of 2011 and will continue in 2012. The expansion is not expected to regain momentum and will close the output gap in 2014. Between 2011 and 2016 trend output of the Austrian economy will grow by 1.6 percent, which is ½ percentage point below the average growth rate of the five years preceding the financial crisis.