Low Regional Growth Differentials, Western Bias. Economic Situation in the Länder in 2015

Regional growth differentials remained low in Austria in 2015 due to a weak upward trend in all demand components. Remaining disparities were driven more by geographical location than by structural differences, with advantages for the Länder of Western Austria. Hence, real gross value added grew at a greater rate in Western Austria (+1.2 percent) than in Eastern and Southern Austria (+0.6 percent and 0.7 percent respectively). Burgenland (as an exception in the East), Vorarlberg and Salzburg grew more strongly, while Carinthia, Vienna and Lower Austria fell behind the national average. Once again, employment growth did not suffice to absorb a strongly rising labour supply. Therefore unemployment rose in all Länder, most strongly in Eastern Austria and the urban regions.