Austria: Economic activity and structural reforms slowly take hold

In 2002 the real gross domestic product expanded in Austria by around 1%. In a western European comparison, Austria thus moved again into the passing lane, which it had left in 2001. However, the situation on the labour market deteriorated clearly, the unemployment rate increasing to 4.1% for the year. Consumer prices increased only moderately by around 1.7%. In 2003 GDP increases should be around 1%. The unemployment rate will amount to 4½%, and prices will be around 1¾% above the level of 2002. In 2004 GDP should grow by around 2%, the unemployment rate will remain at 4½% for the year, and inflation will remain moderate at 1½%.