Regional Economy. 2nd quarter 2016
The Austrian economy has performed much better in 2016 so far than in 2015. The current upturn is characterised by dynamic domestic activities benefitting from the 2016 tax reform, a fast growing population and low energy prices. The dynamics are rooted in a broad sectoral basis with nearly all economic sectors providing positive impulses on growth. Despite the increased importance of the domestic business cycle, regional growth patterns remained largely unchanged compared to 2015. With Burgenland as an exemption, the Länder with above average growth are mainly located in the West of Austria. The same patterns apply to labour market developments. While unemployment numbers have been decreasing since the beginning of 2016 in the West, unemployment was still increasing in the East during the second and third quarter of 2016, although at much lower rates than in 2015.