First Quarter: Economy Still Robust. Business Cycle Report of May 2008

The Austrian economy once again expanded vigorously in the first quarter of 2008. Overall real GDP growth was 0.8 percent quarter-on-quarter, according to WIFO's latest flash estimate. Value added growth in export-oriented industrial production, construction and tourism provided fresh stimulus to the economy. Private consumption remained subdued. For the current quarter, the results of the WIFO business survey suggest a weakening of industrial activity. Accelerated consumer price inflation dampened consumer confidence in March. US GDP growth was almost nil for the second consecutive time in the first quarter, and in Europe, too, leading indicators point to a gradual deceleration in economic activity.