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Austria's economy on the up

Austrian flag on flagpole © photocase.com/rachel

© photocase.com/rachel

14. July 2011

The economic rebound in Austria is continuing apace, with strong GDP growth of 3% forecast for 2011. Exports are the predominant factor in driving growth.

The recent forecasts for Austria’s economic growth by the  and the  have been sharply adjusted upwards. Driven by strong exports, increases in domestic demand and greater corporate investment, Austria’s GDP is set to experience real growth of 3% in 2011. This makes Austria one of the most important growth centres within the eurozone (2011 forecasts: 1.5% to 2.3% GDP growth). For 2012 an increase of between 1.8% (WIFO) and 2.1% (IHS) has been predicted.

The most important factor in the dynamism of the Austrian economy is the global economic recovery and the German rebound in particular. For 2011 as a whole, Austrian exports will continue to grow: Dr. Christoph Leitl, President of the Austrian Federal Economic Chamber is expecting an export plus of around 14% and export volumes of around EUR 125 billion. Exports are also set to grow in 2012 and will continue to be a key economic pillar.

While it is true that inflation will rise by 3.2% in 2011 (2012: 2.3% to 2.6%) because of rising energy and commodity prices, at the same time solid economic growth will contribute to noticeably reducing the national deficit . The end of 2010 already saw an absolute record in terms of employment. However, over the course of 2011 economic growth will slow down, thereby affecting the unemployment rate, which is currently around 4.4%. In 2012 unemployment is expected to level off at around 4.2% to 4.3% (Eurostat-Definition).

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