Wifo: Industry Performs Worse in Q2, 0.3-Percent GDP Hike Confirmed

Wirtschaftsforschungsinstitut (Wifo) confirmed its estimates for Q2 2016: the GDP rose less and the industrial segment performed worse. As expected (a month ago) the GDP rose by 0.3 percent q/q, while at the beginning of the year the GDP growth had been 0.4 percent q/q.

August 29, 2016

RBI: Low Interest, Small Loan Volume Weigh Down on Bank Results

CEO of listed Raiffeisen Bank International (RBI), Karl Sevelda, explains in a comment to the figures published last week, that the earnings were affected by continuously low interest rates and a reduction of the loan volume. On the upside though, the retail business performed above expectations and in spite of the weak market.

August 22, 2016

IHS - Austrian Economy Back on Normal Path

According to the assessment of IHS, the Austrian economy will be growing at an average pace of 1.4 percent per year between 2016 and 2020, following an average growth of 1.1 percent in the past 5 years.

July 21, 2016

Bank Austria Cuts 2017 GDP Growth Forecast to 1.1 Pct, Cites Brexit Risks

Austria will likely record a 1.1 percent GDP growth in 2017, Bank Austria economists said, revising their earlier forecast for 1.5 percent growth. The projection for 2016 was maintained at 1.5 percent.

July 15, 2016

Agrana’s CEO Expects Sugar Price Hike in 2016

The head of Agrana, Johann Marihart, expects a rise of sugar prices in 2016, even though the good prospects for sugar beet crops this year mean that the sugar production volume will be higher and will thus act as a price-reducing factor. The current four-year high of the world sugar price is due to small stock reserves. However, due to the EU market regulation this factor has only a limited impact on EU prices.

July 7, 2016

Economic Report for 2016 Highlights Several Targets

In its economic report for 2016, the federal government states that discussions about the chief challenges of the future will revolve around reinforcing economic growth, fighting unemployment and red tape and increasing the digitization level of Austria. In the context of the Brexit effects it has been noted that a strongly export-oriented country such as Austria profits from further integration.

July 4, 2016

Nowotny Thinks Insurers in Danger in Face of Low Interest Rates

OeNB governor Ewald Nowotny is cautioning about a "doubtlessly substantial stability aspect” which low interest rates have on insurers and funded pension insurance system. He reckons the issue should be discussed.

July 1, 2016

Wifo Calls for More Life Quality in Economic Policy

Economic research agency Wifo calls for a reorganisation of Austria’s economic policy towards more life quality instead of mere GDP growth. Targets are social fairness and environmental sustainability, Wifo head Karl Aiginger said during the presentation of Agenda Austria 2025.

June 30, 2016

Banks Revise Growth Forecasts after Brexit Vote, Wifo Stands by Projection

Bank Austria, Erste Group and Raiffeisen are revising their growth forecasts following the Brexit vote and will likely present the updated projections next week.

June 24, 2016

Austrian Economic Growth to Speed Up in 2016/17

Economic growth in Austria will take off this year thanks to extraordinary factors like the tax reform favourable for consumption, next year due to global influences.

June 23, 2016