Austria: Inflation contained
Driven by strong investment and exports, GDP growth is expected to pick up to above 3% in 2006 before slowing to 2.5% in 2007. With the economy still operating somewhat below potential, inflationary pressures are likely to be contained, particularly in light of continued wage restraint.
The fiscal deficit is likely to be below 1.5% of GDP in 2006. However, the projected impact of the recent tax cuts imply that avoiding a future deterioration of the general government balance will require additional efforts at fiscal consolidation, notably through expenditure cuts.
|Population (000s), 2005||8 233|
|Area (000 sq km)||84|
|GDP (Billion USD), 2005||276.4|
|Life expectancy at birth (Women, Men), 2004 ||82.1, 76.4|
|Total labour force (000s), 2005||4 032|
|Government type||Federal Republic|
|Indicators||% change unless otherwise indicated|
|Household savings ratio||9.7||9.7||9.6|
|Consumer price index||1.7||1.8||2.0|
|Unemployment rate (%)||5.5||5.5||5.5|
|General government financial balance|
|Current account balance (% GDP)||2.3||2.6||3.6|
No. 258/259, December 2006