Vienna  - Austria's real GDP growth increased by 0.8 per cent in the first quarter of 2008 from the final quarter last year, Austria's Institute for Economic Research (WIFO) said on Thursday.

Compared with the same period last year, the country's GDP grew by 3.5 per cent, mainly thanks to strong growth in the heavy industry and construction sectors.

WIFO however warned that the growth boost was likely to be only temporary, as the economy was expected to slow during the remainder of 2008 owing to the deteriorating global outlook. Weak private consumption was also putting a brake on growth.

Inflation rates slowed slightly in April, the country's statistics office Statistik Austria said. Inflation was down to 3.3 per cent year-on-year, compared with 3.5 per cent in the previous month.

Main factors pushing inflation remained fuel and food. Petrol prices increased by 24 per cent compared with April 2007, food prices were up by 7.4 per cent. (dpa)