The Austrian Economy in 1990: Reunification of Germany Prolongs the Economic Upswing in Austria

While most industrialized countries experienced a slowdown in 1990, the economic upswing in Austria continued. Real GDP grew by 4.6 percent. In the course of the year foreign demand, strengthened by the import pull in Germany, replaced domestic demand as the driving force of the upswing. Despite the high rate of economic activity and large employment gains, unemployment increased as a result of the huge inflow of foreign labour. Inflation was modest in 1990.