Upswing with Stronger Momentum, but Subject to Higher Risks. Economic Outlook for 2011 and 2012

The cyclical upswing in Austria continues. Driven by the swift expansion of global activity, exports are posting strong gains. Meanwhile, the momentum is being transmitted to private investment which is set to rise substantially over the forecast period. Short-term indicators suggest that the positive trend will persist. WIFO expects Austria's GDP to increase by 2.5 percent in 2011 and 2.0 percent in 2012. The major risks for the upswing currently derive from the drift in commodity and energy prices, the disaster in Japan and the continued fragility of the international financial system.