The world-wide economic upswing and the improvement in the competitive position of Austria's economy in 1997 resulted in an export boom, which also stimulated investment activity. Domestic demand remained sluggish, however, in the wake of the government's stern consolidation drive. Inflation was...

In 1992 Austria's economy entered a phase of weakness. The rate of economic growth declined to 1.5 percent; manufacturing and exports slowed down, only private consumption and construction sector tended to boost the economy.

In Austria the recession of 1993 was mild relative to other countries. Real GDP declined by 0.3 percent. Exports, tourism, and investment in machinery were hard hit by the slump. Consumption and construction activity helped to stabilize the economy. Austria, with its small, open economy, was not...