Regional Cyclical Pattern Reflecting Needs for Structural Adjustment

Whenever the business cycle approaches its trough and challenges for firms become particularly severe the regional pattern of competitive strength and need for adjustment shows up clearly. Upper Austria, Salzburg and the Tyrol fare much better than Styria, Carinthia and Vorarlberg. The Eastern region develops more favourably than at this stage of previous cycles, obviously benefitting from the political changes in the former socialist countries.