Upturn in Manufacturing Dampened by Weakness of Domestic Demand. Economic Outlook for 1996 and 1997

Markus Marterbauer

Austrian Economic Quarterly, 1996, vol. 1, issue 4, 171-176

Abstract: Business activity in Austria in 1996 and 1997 is shaped by forces working in different directions. Growth of domestic demand is set to lose considerable momentum as private consumption may level-off from mid-1996 due to a squeeze in disposable income. Construction activity is unlikely to recover from its present slump. However, goods exports and output in export-oriented manufacturing sectors should pick up notably. Projected GDP growth of ¾ percent (1996) and 1 percent (1997) is likely to prove insufficient as to allow an improvement in labor market conditions.

Date: 1996
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