Early Signs of Cyclical Recovery. Economic Outlook for 2013 and 2014

After six consecutive quarters of decline, GDP in the euro area headed up in the second quarter 2013. Business surveys suggest that the positive trend will continue in the near future. The recovery will nevertheless be held back by the many existing structural problems. Due to the delayed cyclical pick-up, GDP growth for 2013 will remain subdued also in Austria, at a projected 0.4 percent. Towards the end of the year, domestic activity should gain momentum, raising the annual rate of growth to 1.7 percent in 2014. Despite this rebound, the unemployment rate will rise to a new high. Headline inflation is set to remain at a moderate 2 percent.