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


Events for December
M T W T F S S
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 1 2 3 4
Add your event FREE

Today

Videos


BurgKino

Pub Quiz everyTuesday at Johnny's Pub

Popular in Austria


Cosmo&Nanu

Prices and exports on the rise

Experts predict Austria’s inflation to reach 2.1 per cent this year as the consumer price index (VPI) reached a new low.

The domestic VPI, which especially considers products of daily demand, was three per cent in the first month of this year. This means that Austrians’ drugstore and supermarket shopping expenses rose by three per cent from January 2011 to January 2012. The development was the lowest increase in a year, researchers said.

The VPI was created to establish an indicator which emphasises the costs of the middle class since the inflation index also takes the price of limousines and various repairs which do not have to be paid on a daily basis into account. Especially two-digit price hikes for car petrol and mineral oil fuelled the VPI in January.

The Institute for Economic Research (WIFO) said yesterday (Weds) it expected the Austrian inflation to reach 2.1 per cent in 2012 after prices soared by 3.3 per cent from 2010 to 2011. Especially the struggling European economy will help to calm down the spiralling prices, according to analysts – who warned from unforeseeable developments on the global oil trading markets.

WIFO recently announced that the gross domestic product (GDP) declined by 0.1 per cent from the third to the fourth quarter of 2011. The research group added it saw a growth potential of 0.4 per cent for the domestic economy from 2011 to 2012. An improvement of 1.6 per cent from 2012 to 2013 and of two per cent from 2013 to 2014 is possible, WIFO added.

Austrian and international experts are at odds over whether the various uncertainties in the Eurozone would affect Austrians’ spending power and harm the domestic economy. Meanwhile, Austria’s export industry seems to be in an excellent condition. The Economy Chamber (WKO) announced on Monday that Austrian firms sold goods and services worth 122 billion Euros to foreign partners in 2011. WKO officials said this was an increase of 12 per cent compared to the year before – and an all-time record.

At the same time, the trade deficit widens as imports were 8.2 billion Euros higher than exports – a gap around twice as high than in 2010. Experts identified rising expenses for energy products and services and fuel as a crucial factor for the soaring difference between the value of imports and exports.

Austrian People’s Party (ÖVP) Economy Minister Reinhold Mitterlehner’s appeal from last May on enterprises to focus on emerging markets like China, India and countries in South America apparently fell on deaf ears as 80 per cent of exports went to other European countries. The WKO now wants to increase the value of services sold to companies and public institutions abroad but also warned of a "weak and tired Europe while Asia catches up".

Around 40,000 companies with headquarters in Austria do business abroad. German firms are the most important partners of many of them. Europe’s most powerful economy acquired Austrian products worth more than 35 billion Euros in 2011, up by 11 per cent compared to 2010. Austrian businessmen are carefully observing decision-making in Italy. The debt-stricken country is Austria’s second-most important trade partner.

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: business boom

  1. Austrian skiers create overnight stay record

    » Business 2012-05-29

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

  2. Knoflacher emphasises pedestrian zones' economic effects

    » General News 2012-05-24

    A renowned traffic planner has stressed that shop owners are generally appreciating the introduction of pedestrian zones.

  3. IV demands focus on industry in crisis

    » Business 2012-05-24

    The general secretary of the Federation of Austrian Industries (IV) has appealed on Europeís political leaders to strengthen the continentís industry.

more related articles tagged "business boom"

Tag cloud:
ndash  imports  Euros  markets  domestic  abroad  business  exports  rsquo  worth  Austria  products  value  WIFO  economy  inflation  sold  billion  European  price

Latest News

 

Ebola's deadly reach impacts Vienna student
Austria has yet to record its first case of Ebola, but the feared virus has already had a severe impact on the lives of Africans living in Vienna.

Grigorij Sokolov Works His Magic At Vienna Konzerthaus
Whilst the world-famous Wizard of Oz played at the Volksoper, there was another Wizard in the Konzerthaus giving his 16th performance in Vienna!

Penelope Cruz To Play The Ice Cream Killer
The memoirs of the woman dubbed the Ice Cream Killer after she shot dead two ex-lovers before hacking the bodies up with a chainsaw and telling neighbours the noise was a new ice cream machine are due to be turned into a blockbuster with Penelope Cruz playing the lead role.

Kid Left In Coma After Beaten By Teacher For Talking
This is the shocking image of a little Chinese girl before and after she was punished by her teacher - for talking in class.

Freezing Rain Causes Chaos In Central Europe
Freezing weather has arrived in Europe with a vengeance with a layer of ice blanketing parts of Austria, Germany and the Czech Republic and causing traffic chaos.

Holey Smoke As Car Disappears Down Sinkhole
Motorist Wei Hsiao found himself in a hole lot of trouble in China when a giant sinkhole opened up on the road beneath him, swallowing his entire car.

Shock Moment Police Helicopter Explodes On Street
This is the moment a police helicopter exploded into a spinning ball of flame in Chile when a fire truck clipped one of its rotors.

More Than Twenty 100,000 GBP Motors Used In Bridal Convoy
A Chinese couple who wanted to have the most expensive wedding convoy possible arranged for a convoy of top of the range cars including a stretch Hummer followed by Lamborghinis, Porsches and other VIP motors.

Riot Police Star In Downs Syndrome Calendar
Spanish riot police have joined forces with Down's syndrome kids to take part in a special calendar for charity.

Chinese Nuclear Winter Smog Leaves Clinics Full
Fresh proof of Chinese scientists' claims that the country's toxic air pollution resembles a nuclear winter are shown by these images that show clinics and hospitals packed with patients suffering with trouble breathing.

 


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