Cyclical Weakness Affects Western Provinces and Upper Austria Most Severely

  • Norbert Geldner
  • Peter Mayerhofer
  • Gerhard Palme

With the economy being characterized by a slump in exports, private consumption and the construction sector contributed the most to economic growth, expecially in Vienna and the Burgenland. As the boom in demand that was triggered by the reunification of Germany levelled off manufacturing in Vorarlberg, Lower Austria and Styria where particularly hard hit, but suppliers of German manufacturing in Tirol, Salzburg, and Upper Austria were, however, hardly inpaired. Production of electricity declined in all Western provinces because of bad weather. Early Easter hurt the winter season in the West and the growth in city tourism was slowed down by political factors.