Economy Deteriorating at Accelerating Pace

Following a contraction of the Austrian economy by 0.2 percent quarter-on-quarter, seasonally and working day adjusted, in the fourth quarter of 2008 (+0.3 percent year-on-year), the slowdown in manufacturing activity continues in the first quarter of 2009. The results of the latest WIFO Business Cycle Survey signal a deepening of the crisis. The recession that has hit Austria's major trading partners is weighing on export and industrial activity, with the job market reacting with a rapid rise in unemployment in February.