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Exports and Investment Adding Momentum to Cyclical Activity. Economic Outlook for 2006 and 2007

Author

Listed:
  • Marcus Scheiblecker
  • Ewald Walterskirchen

    (WIFO)

Abstract

Driven by exports and investment, demand and output in Austria are growing by 2.6 percent in volume in 2006, the highest rate since 2000. By contrast, the momentum of private consumption remains subdued, despite the boost to net incomes from the tax reform. The jump in oil prices is hardly giving rise to second-round effects via wage increases, thereby holding back inflation, but also real income gains. In 2007, the one-off effects from Germany will turn negative, slowing GDP growth in Austria to 2.1 percent.

Suggested Citation

  • Marcus Scheiblecker & Ewald Walterskirchen, 2006. "Exports and Investment Adding Momentum to Cyclical Activity. Economic Outlook for 2006 and 2007," WIFO Economic Outlook, WIFO, number 26754, November.
    • Handle: RePEc:wfo:wkprog:26754
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    Keywords

    WIFO Economic Outlook;

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