Austrian Economy Returns To Growth

19 Jan 2013

Today, Austria´s National Bank (OeNB) has presented the results of the economic indicators.

In the fourth quarter of 2012, Austria´s GDP was down by 0.1% against the third quarter. As a result, prior forecasts had to be revised again. In total, Austria´s economic growth came at 0.6% last year. According to OeNB, the situation is expected to improve, however. At the beginning of 2013, the Austrian economy has found a bottom, OeNB says. In the first quarter, the Austrian economy is expected to expand by 0.2%.

OeNB refers to the improving global economic outlook. The financial markets have become more stable and the economic indicators for emerging markets as well as the U.S. are moving upwards. However, the public debt crisis in the U.S. was only solved for the time being. In the medium term, the U.S. will have to implement austerity measures, OeNB says. “The enormous need for budget consolidation is still a substantial risk factor.”

In the third quarter of 2012, household consumption was up by 0.2%. In the last quarter, the growth rate was 0.0%. This is mainly due to the decreasing real household income, OeNB says.

Not only domestic demand is weakening, but also foreign demand has slowed down. In the fourth quarter, Austria´s exports were down by 0.9%. In total, exports only grew by 0.7% last year. Furthermore, Austrian firms still hesitate to increase their investments, OeNB says. In the next months, the unemployment quota is expected to increase slightly.

Source: https://www.friedlnews.com/article/oenb-austrian-economy-returns-to-growth