Economic Outlook for 1991 and 1992: Cyclical Downturn Leaves Labour Market Unaffected

The Austrian economy has entered a period of slower growth. Merchandise exports, while advancing at a slower pace since the onset of the international recession, have been boosted over the last twelve months by vigorous demand from Germany following unification. With monetary and fiscal policy becoming more restrictive the German import boom is set to abate thereby weakening prospects for the expansion of Austrian manufacturing output. Domestic demand will remain firm for some time as personal income and employment continue to post substantial gains.