Backed by the fiscal stimulus measures adopted at home and abroad, economic activity in Austria will pick up from its low level in the second half of 2009. On annual average, GDP will nevertheless shrink by 3.4 percent compared to last year. In 2010, growth is set to remain sluggish at 1 percent, with no relief yet to expect for the labour market. Inflation should remain tamed even with some rebound in oil prices.