Cyclical Recovery of Investment. Economic Outlook for 2006 and 2007
Austria's economy is projected to grow by 2.4 percent in volume in 2006. The cyclical recovery will be sustained by exports. The manufacturing sector will largely benefit from the front-loading of purchases of durable consumer goods, notably motor cars, in Germany ahead of the VAT increase as from 1 January 2007. Results from the regular WIFO business survey suggest that improved sales prospects will induce companies to carry out new investment projects. Private household demand, for its part, will only gradually overcome its sluggishness caused by wage moderation and a rising saving ratio. The deceleration of inflation in 2006 will leave scope for limited gains in real income. Higher public spending on active labour market policy will prevent unemployment from rising further, but will, together with other new expenditure commitments, also lead to an increase in the general government deficit.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 11 (2006)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: Arsenal Object 20, A-1030 Wien|
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wfo:wquart:y:2006:i:1:p:1-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz)
If references are entirely missing, you can add them using this form.