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Gradual Recovery of Exports and Investment. Economic Outlook for 1996 and 1997

Author

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  • Markus Marterbauer

    (WIFO)

Abstract

GDP growth in Austria is projected to remain below its long-term trend. Main reasons are sluggish activity abroad and restrictive demand effects of Europe-wide fiscal consolidation. Nevertheless, a cyclical recovery may be expected to come primarily from exports. Domestic private consumption will be restrained by a fall in real disposable income. The labor market is unlikely to improve, with employment expected to fall until 1997. However, the current account deficit should shrink markedly and inflation stay below a 2 percent annual rate.

Suggested Citation

  • Markus Marterbauer, 1996. "Gradual Recovery of Exports and Investment. Economic Outlook for 1996 and 1997," Austrian Economic Quarterly, WIFO, vol. 1(3), pages 123-129, July.
    • Handle: RePEc:wfo:wquart:y:1996:i:3:p:123-129
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