Problems in the Basic Industries Affect Regional Development

Weak demand on several important foreign markets limited output gains in manufacturing in the third quarter of 1991. With their strong dependence on domestic markets, Austria's Eastern provinces were less affected by this development. Styria and Upper Austria suffered from their high share in basic industries, Vorarlberg from the high export share of its manufacturing sector. The Southern and Western provinces attracted many tourists who stayed away from war-torn Yugoslavia; Vienna has continued to suffer from weak demand in city tourism, but has benefited from the upturn in construction.