ECONOMISTS CUT AUSTRIAN GDP GROWTH FORECAST
The Institute for Economic Research
(WIFO) said it has cut its forecast for Austria's 1987 gross
domestic product growth to a real one pct from a two pct
forecast made last December.
    WIFO chief Helmut Kramer told a new conference that he saw
the one pct figure, which compares with 1.8 pct last year, as
the upper limit of growth. The institute had made the revision
due to poor prospects for Austrian exports, he added.
    A collapse in sales to the Eastern European and oil
producing states, combined with the effects of the dollar's
fall, mean exports overall are unlikely to rise this year.
    Kramer said domestic demand alone would fuel growth this
year. After last year's 2.8 pct rise in real incomes, private
consumption was likely to rise 2.25 pct in 1987 after 1.9 pct
in 1986, despite a present trend towards higher savings.
    Unemployment was likely to rise to almost six pct from 5.2
pct last year due to the slack economic activity.
    Kramer said the current account was likely to run a deficit
of about four billion schillings compared with a 2.6 billion
surplus recorded last year. The National Bank, Austria's
central bank, last month forecast the current account would be
roughly in balance this year.
    However, Kramer said the lower economic growth should have
no notable effect on the government's attempts to cut the
budget deficit. This year's aim of reducing the deficit to 4.9
pct of GDP from 5.1 pct in 1986 could still be achieved, he
said.
 REUTER
