WIFO is upholding its forecast for real GDP growth in 1999 at 2.2 percent, unchanged since last March. Next year, growth is projected to accelerate to a rate of 2¾ percent. Exports and industrial activity have turned around at the beginning of the year and are now heading upward, confirming earlier expectations. Continued strength of domestic demand and reinforced labour market policy action will make for a noticeable decline in unemployment. Inflation should remain subdued, despite rising oil prices. The tax reform and higher family benefits, while adding to private disposable income next year, will drive up the general government deficit to 2½ percent of GDP.