Regional Business Cycle Reflecting Structural Weakness of Manufacturing Industry

Regional disparities in economic growth became squeezed with the business cycle slowdown. Provinces with a high share of mass production of manufactures were the most affected by the deceleration of industrial activity. In the Eastern region industry benefitted from domestic demand and some stimulus from East-Central Europe. Tourism developed favourably except for city travel from abroad. The West to East decline in tourism was contrasted by developments in the construction sector which was booming notably in the Vienna area. GDP growth exceeded the national average in Salzburg and Tyrol, but fell below that mark in Upper Austria, Styria and Vorarlberg.