Persistent Economic Weakness Had Greatest Impact on Eastern and Southern Austria

Both internationally and in Austria, the year 2002 brought no turnaround of the sluggish economy. Growth once again was unsatisfactory. Viewed annually, real net output in Austria grew by just 0.6 percent. In regional terms, however, the development was highly divergent. The slump affected primarily eastern and southern Austria, whereas business picked up again in the western parts of Austria. There, the economy revived, of all times, in the second half of the year, at a time when the mood grew gloomy elsewhere and the economy lost much of its remaining buoyancy. In an unfavourable international climate, the companies in the west achieved market shares in manufacturing and tourism which helped stimulate other sectors of the economy.