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Strong Cyclical Upswing Leaves Budgetary Problems Unresolved. Economic Outlook for 2000 and 2001

Author

Listed:
  • Markus Marterbauer

    (WIFO)

Abstract

Accelerated export growth and solid expansion of domestic demand suggest the Austrian economy will grow by 3.1 percent in volume this year – an upward correction by ¼ percentage point from last December's projections. In 2001, growth may decelerate somewhat (+2.7 percent) under the impact of slackening activity abroad and, more importantly, a stronger demand-restraining impact of domestic budgetary retrenchment. Fiscal policy action, while limiting government net borrowing at a ratio of 2 percent of GDP, will contribute to somewhat stronger inflation. The labour market will benefit from the favourable business cycle trend.

Suggested Citation

  • Markus Marterbauer, 2000. "Strong Cyclical Upswing Leaves Budgetary Problems Unresolved. Economic Outlook for 2000 and 2001," WIFO Monatsberichte (monthly reports), WIFO, vol. 73(4), pages 229-230, April.
  • Handle: RePEc:wfo:monber:y:2000:i:4:p:229-230
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