Austrian Times RSS FeedsLike the Austrian Times Facebook page!Follow us on Twitter!


Events for August
M T W T F S S
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Add your event FREE

Today

Videos


BurgKino

Pub Quiz everyTuesday at Johnny's Pub

Popular in Austria


Cosmo&Nanu

Weak growth ahead, WIFO warns

It will take another two years until the Austrian economy grows by two per cent, a Viennese institute has warned.

The Institute for Economic Research’s (WIFO) five-year forecast – which was presented yesterday (Mon) – shows that the Austrian economy could grow by two per cent from 2013 to 2014. WIFO research reveals that the gross domestic product (GDP) is unlikely to improve by more than 0.4 per cent from 2011 to this year. It could grow by 1.6 per cent from the current year to 2013, WIFO experts said yesterday.

WIFO stressed that its most recent findings highlight the domestic economy’s struggle to achieve pre-crisis growth rates. Long-term investigations show that the Austrian economy grew by 2.2 per cent a year on average between 2006 and 2011. Figures for 2009 show that the Austrian economy was unable to fully protect itself from harmful effects of the global stock market turmoil since the GDP declined by 3.9 per cent in that year before it jumped by two per cent in 2010.

WIFO analysts said yesterday that Austria’s economic prosperity would continue to strongly depend on exports. The institute assumes that their value might rise by 5.5 per cent a year in the next five years. WIFO concluded that such developments may encourage Austrian businesspeople to invest in their facilities.

The Viennese economic research group’s predictions come shortly after the World Bank warned that the Eurozone would plunge into recession this year. World Bank President Robert Zoellick said last week that the 17 European Union (EU) members’ average GDP would decline by 1.1 per cent in 2012 compared to the year before. Zoellick added that World Bank analysts expected the Eurozone’s economy to regain strength in 2013 when its GDP might leap by 1.1 per cent.

Zoellick also announced that World Bank research showed that the global economy would rise by 2.5 per cent this year before a growth rate of 3.1 per cent could be achieved in the following year. Zoellick also warned that the global economy could collapse if the crisis in Europe worsened further.

Austria was one of nine Eurozone countries which were downgraded by Standard & Poor’s (S&P) earlier this month. The American rating agency lowered Austria’s rating by one grade from the best possible estimation of AAA to AA+. S&P argued that Austria’s economy would struggle due to the country’s rising debts.

The rating agency also expressed concerns considering Austria’s strong economic ties with cash-strapped Italy. S&P identified Hungary as another danger zone for the Austrian economy. Firms based in the alpine country currently manage 2,000 branches in the Eastern European (EE) state which joined the EU in 2004 but is not part of the Eurozone.

S&P warned that Austria would not have sufficient assets to save its banks from ruin in the case of a Hungarian bankruptcy. Austrian banks are among the leading investors in the EE region. Austrian National Bank (OeNB) boss Ewald Nowotny criticised S&P and called the rating agency’s verdict "politically motivated".

Austria’s government coalition of Social Democrats (SPÖ) and the conservative People’s Party (ÖVP) was not pleased to hear of the downgrading either. SPÖ Chancellor Werner Faymann and ÖVP Vice Chancellor Michael Spindelegger promised to continue trying to restore the budget. Discussions about details of the coalition’s austerity package are continuing.

Austrian Times


Are you on Facebook? Like the Austrian Times on Facebook and win great prizes!


Cosmo and Nanu
ORF Watch

Related articles: EU

  1. Best of the bookshelf in May, part four

    » Panorama 2012-05-31

    A Harvard University professorís book on the killing of Osama Bin Laden, a collection of funny experiences on planes and many more interesting releases are out now.

  2. Drachma reintroduction 'would mean social explosion'

    » General News 2012-05-31

    A renowned economist has warned from reintroducing the drachma in Greece.

  3. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

more related articles tagged "EU"

Related articles: crisis

  1. Drachma reintroduction 'would mean social explosion'

    » General News 2012-05-31

    A renowned economist has warned from reintroducing the drachma in Greece.

  2. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  3. Property prices keep climbing

    » Business 2012-05-31

    A real estate expert has expressed concerns about property prices in Austria.

more related articles tagged "crisis"

Related articles: CEE news

  1. AUA under pressure as pilots quit

    » Business 2012-05-30

    The number of pilots and stewardesses leaving Austrian Airlines (AUA) because of the upcoming pay cuts is on the rise.

  2. Pay cuts scare off AUA pilots

    » Business 2012-05-29

    Dozens of pilots have left Austrian Airlines (AUA) in the past weeks, according to the loss-making carrierís works committee.

  3. Austrian skiers create overnight stay record

    » Business 2012-05-29

    The number of winter season overnight stays by Austrians has reached a new record.

more related articles tagged "CEE news"

Related articles: Austria & America

  1. Best of the bookshelf in May, part four

    » Panorama 2012-05-31

    A Harvard University professorís book on the killing of Osama Bin Laden, a collection of funny experiences on planes and many more interesting releases are out now.

  2. Best of the bookshelf in May, part three

    » Panorama 2012-05-30

    A long-lost urban photography collection, an excellent new travel guide for Croatia and a new book about growing up in Austria in the 19th century are out now.

  3. Brodbeck criticises credit rating 'hysteria'

    » Business 2012-05-01

    A German economist has warned from "dangerous monopoly circumstances" in the global rating business.

more related articles tagged "Austria & America"

Tag cloud:
Austrian  domestic  regain  economy  Viennese  rsquo  rating  Eurozone  growth  Bank  analysts  crisis  Zoellick  European  global  coalition  Ouml  ndash  WIFO  agency

Latest News

 

Mum And Daughter Struck By Lightning In Pool
A mother and her daughter were hospitalised after they were struck by lightning Ė in a swimming pool.

Police Nab Porn Star Who Filmed In Local Church
A woman accused of making a porn movie in a local church has been caught after an informant tipped off police that he recognised her by her breasts after an appeal for information.

Young Hip Hop Dancer Gets 18 Years For Drug Smuggling
A blonde hip hop dancer and charity worker promised an international career after she was spotted by a talent scout has been jailed for 18 years in Indonesia after her work offer turned out to have been part of an elaborate drugs con.

Teen Dying Of Cancer Killed At Charity Event After Ride In Porsche Goes Wrong
The family of a sick boy who was offered a trip in a high-performance Porsche because he was dying of cancer is suing the charity after the Porsche he was travelling in crashed head-on into oncoming traffic.

Japanese Pervert Planned Natascha Kampusch Style Kidnap
A Japanese man inspired by Austrian pervert Wolfgang Priklopil kidnapped a 10-year-old girl and kept her in a purpose-built cellar where he planned to train her to become the perfect wife.

German Hiker Yodels For Help After Getting Trapped In Cattle Grid
A portly hiker dressed in traditional Lederhosen was rescued after he yodeled for help after getting stuck for three hours in a cattle grid.

Austrian Wine Grower Sets New Record For Maturing Grapes
An award-winning Austrian winegrower is believed to have set a new record after leaving harvested grapes for an incredible nine months before fermenting them to create an ultra-sweet white and red wine.

Austrian Castle Owner Shocked By Airplane Wheel In Duck Pond
An Austrian castle owner got a shock after discovering this massive aircraft wheel had landed in his duck pond.

Glock Receives Austrian Award At Birthday Party
Austrian gun maker Gaston Glock has celebrated his 85th birthday with a huge ceremony in which the charitable work of himself and his wife Kathrin was honoured with a top Austrian award, and confirmation that this year two streets and a business park are to be named after him.

Sausage Surprise As Giant Wurst Is Pinched
Austrian police are hunting crooks who broke open a market stall and stole a 1.5 metre sausage worth over 2,000 EUR in the picture postcard village of St Michael in the region of Lungau.

 


Mala Vrata

The most popular stories –
last 7 days



Don't moan alone, the Ombudsman Investigates.

Why suffer in silence. Let off steam by letting our readers share your troubles. File your complaints about anything and everything here.

Our ombudsman David Rogers will try and help solve some of the problems from lazy civil servants through to incompetent companies – and at the very least the worst transgressors will end up in our weekly special report.


Austrian Zimmers