Economic Growth Remaining Subdued. Economic Outlook for 2003 and 2004

For the third year in a row, the Austrian economy will grow by only around 1 percent in 2003. Adding to the persistent weakness of domestic demand are the economic repercussions of geo-political instability. For 2004, uncertainties are particularly large, with growth projected to stay below average (1.7 percent). Weak overall economic conditions will lead to a further rise in unemployment and a widening budget deficit.