Economic Growth Remaining Subdued. Economic Outlook for 2003 and 2004

For the third year in a row, the Austrian economy will grow by only around 1 percent in 2003. Adding to the persistent weakness of domestic demand are the economic repercussions of geopolitical instability. For 2004, uncertainties are particularly large, with growth projected to stay below the long-term average (1.7 percent). Weak overall economic conditions will lead to a further rise in unemployment and a widening budget deficit.