Austrian GDP growth expectations revised upwards: institute

BY  | FROM  | 2017-12-22 18:40

Two leading Austrian economic research institutes have revised their 2017 GDP growth expectations for the domestic economy upwards on Thursday, citing a boom driven by an improving international economy.

The Austrian Institute of Economic Research (WIFO) and the Institute for Advanced Studies (IHS) expect the Austrian economy this year to grow 3 percent and 3.1 percent respectively.

Both had in their previous forecasts anticipated 2.8 percent growth. This brings their expectations in line with the Austrian central bank, who recently also revised its prognosis to above 3 percent.

The two institutes said the boom is largely supported by strong export growth, an increase in investments, and consumer demand in private households.

The employment market has also seen an improvement on the back of these economic developments, with unemployment expected to see a continued decline until 2019.

WIFO expects the momentum to hold into 2018, expecting further growth of 3 percent, while the IHS is somewhat more conservative, lowering its previous forecast of 2.8 percent to 2.7 percent.

Both institutes believe the growth expansion will see a significant slowing in 2019; WIFO forecasting 2.2 percent growth, the IHS 1.9 percent.

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