Austria is continuing to focus on the creation of jobs alongside attempting to reduce its deficit following the worldwide economic downturn, the country's forthcoming 2012 budget has revealed.

Finance minister Maria Fekter explained the nation is hoping to reduce its budget deficit to 3.2 per cent of gross domestic product by off-setting increased spending with higher revenue from income and corporate taxes and sales.

She said: "We assume we can keep the AAA rating with this stabilization budget and we expect that our borrowing spreads will not rise further."

Ms Fekter explained reducing the deficit continuously will mean the Austrian economy will continue to be stimulated, rather than grinding to a halt.

According to recent data from Statistics Austria, the number of unemployed people in the nation stood at approximately 175,000 during the second quarter of 2011, marking a 4.1 per cent decrease from the same time in 2010 when 187,000 people were without work.

Posted by Alex Donnell