Austria Economic Outlook
August 28, 2018Although the pace of growth moderated in the second quarter, the Austrian economy continued to perform strongly and above the EU-average. Economic growth was driven by robust domestic demand, with both private and public consumption expanding at a solid clip. Household consumption benefited from a declining unemployment rate and still-high consumer sentiment. In addition, the external sector contributed positively to growth on a solid expansion in exports. Looking at Q3, consumer confidence was elevated in July and suggests that private consumption will remain an important driver of growth, while the manufacturing PMI increased. On a less positive note, business confidence continued to ease in the same month, likely on swirling global trade war fears.
Austria Economic GrowthDomestic demand, supported by a tightening labor market pushing up wages, should continue to support the economy in the remainder of this year and next. Private consumption could be boosted further from 2020 onwards by tax reforms proposed by the government. The reform proposals lack clear funding plans, however, and could pose a risk to the long-term outlook. Our panel forecasts GDP will grow 2.8% in 2018, which is unchanged from last month’s estimate. For 2019, the panel expects growth of 1.9%.
Austria Economy Data
5 years of Austria economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.67||0.11 %||Sep 20|
|Exchange Rate||1.18||0.65 %||Sep 20|
|Stock Market||3,381||-1.00 %||Sep 20|
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Austria Economic News
August 31, 2018
Consumer confidence moderated in August, with the index dropping to 8 from 9 in July; however, sentiment remained firmly entrenched above the crucial zero-point mark separating optimism from pessimism among consumers.
August 29, 2018
The headline Purchasing Managers’ Index (PMI)—which is compiled by Bank Austria and released by IHS Markit—resumed its general downward trend since the start of the year in August, dropping to 56.4 from 56.8 in July and registering the lowest reading since December 2016.
August 24, 2018
Industrial production fell 1.5% month-on-month in seasonally-adjusted terms in June, ending the second quarter on a weak footing.
July 31, 2018
Austria’s economy continues to enjoy solid momentum, according to a flash estimate released by the Austrian Institute of Economic Research on 31 July.
July 30, 2018
Consumer confidence was stable in July, with the index unchanged at 9, firmly entrenched above the crucial zero-point mark that separates optimism from pessimism among consumers. Although consumers were more optimistic about their current financial situation, they were less upbeat regarding their financial situation in the next 12 months.