Cyclical Weakening Leading to Higher Unemployment. Economic Outlook for 1996 and 1997

The marked deterioration of the international scenario is the crucial element in the revision of the short-term outlook. Exports and domestic investment are clearly losing momentum. Austrian GDP is projected to rise by only ¾ percent in 1996 and by 1 percent in 1997. Slow growth will lead to a further decline in employment and an increase in unemployment to a new record high. The comprehensive fiscal consolidation program of the Federal Government should bring down the general government deficit to its target value.