Further developments of the world economy are subject to high risks, in the face of volatile stock markets and a possible war against Iraq. Present cyclical conditions are characterised by a persistent weakness of internal demand, both in Europe at large and in Austria.

Underpinned by expansionary economic policy, global economic activity has stabilised, with world trade expanding vigorously since the summer. In Austria, real GDP grew at a seasonally adjusted quarter-on-quarter rate of 0.9 percent in the third quarter, according to provisional calculations....

The weakness of domestic demand in Austria and in major trading partner countries is shaping current economic developments. Hopes for a pick-up of activity are based upon a speedier recovery in the USA which is, however, subject to considerable risks. In Austria, equipment investment and imports...

Surveys among industrial companies show a significant improvement of the business climate both in Austria and the euro area. Positive incentives are coming mainly from strong economic growth in the USA and in Asia, in spite of the strong euro exchange rate. Companies in manufacturing report a...

Real GDP contracted at a seasonally and working day adjusted quarterly rate of 0.2 percent in the fourth quarter of 2008. The economic downturn has taken a firm grip of the export-oriented manufacturing sector, with production, capacity utilisation and incoming orders markedly below the levels...

The results of the WIFO business cycle survey show that sentiment in the manufacturing and construction sectors has brightened markedly in the first quarter of 2006. Production output and export figures are displaying a modest up-ward tendency. But there is no indication yet of a rebound in...

Activity in the export-oriented sectors is expanding strongly. Firms' optimism on the short-term outlook is unabated, and the odds are for a revival of investment. However, the strength of the euro and high energy prices are weighing on the cyclical recovery. The level of unemployment remains high.

In Austria, seasonally and working day adjusted GDP grew only by a mere 0.4 percent in real terms quarter-on-quarter in the second quarter of 2008 (+2 percent in year-on-year terms), according to WIFO's flash estimate. This marks the end of the economic upswing. The reversal of the economic...

In the fourth quarter, real GDP expanded by 0.8 percent compared with the previous quarter and by 2.7 percent compared with a year before. Over the whole of 2010, the economy grew by 2 percent. Exports and manufacturing remain the key drivers of the economic recovery. Equipment investment is...

Benefiting from brisk external demand, Austria's manufacturing sector continued its recovery also in the autumn: in September, production was 11 percent higher than during the trough in May 2009, and the results of the WIFO business cycle survey suggest that production activity remained lively...