Outlook for 1994 and 1995: Economic Recovery Saddled with Current Account Problems

Past forecasts of an economic recovery are being confirmed by actual developments. The Austrian economy is likely to grow by 2¾ percent in 1994 and by 3 percent in 1995. Unemployment and inflation are expected to decrease gradually. The rising deficit in the current account, partly due to the deterioration in the tourism balance, constitutes, however, a serious challenge to policy makers.