Austria's 2014 economy forecast to grow less than 1%

September 19, 2014 10:27 am 

VIENNA, Sept. 19 — Two leading Austrian research institutes forecast Thursday a 0.8 percent Austrian GDP growth for the year on the back of deterioration in the economy.

Austrian Institute of Economic Research (WIFO) and Institute for Advanced Studies (IHS) stated international demand and, as a result foreign trade, is weak and affecting investors' mood.

This, in turn, negatively impacted on employment.

The latest prognosis from both institutes represents a significant downward revision since their last prognosis three months ago when WIFO expected economic growth of 1.7 percent and IHS forecast 1.9 percent.

However, both institutes forecast an improvement in 2015 with WIFO and IHS expecting GDP growth of 1.2 percent and 1.6 percent, respectively, albeit with only modest upward momentum.

The current crisis between Russia and Ukraine still represents significant risk to Austrian domestic economic growth however, particularly if the situation worsens.

On the other hand, the new European Commission to be appointed later in the year could provide a boost to economic growth if it manages to set clear economic stimulus measures. (PNA/Xinhua)

JBP/CJT/JSD

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