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Recently Released Market Study: Austria Business Forecast Report Q2 2013

Recently published research from Business Monitor International, "Austria Business Forecast Report Q2 2013", is now available at Fast Market Research


Boston, MA -- (SBWIRE) -- 05/11/2013 -- Core Views:

Our view that Austrian growth would prove weak in 2012 has played out and retain our below consensus forecast for subdued real GDP growth of just 0.9% over the course of this year. Stimulatory policy by the European Central Bank and other major central banks should aid a modest pickup in Austrian growth towards the end of the year, but this is unlikely to be particularly strong given the depressed conditions that will continue to prevail through much of the eurozone. We forecast the Austrian economy to expand by just 1.5% in 2014.

Austria is likely to retain a hawkish stance towards the policy response enacted by European policymakers in response to the ongoing sovereign debt crisis over the months ahead. However, it is likely to compromise in order to ensure regional financial stability, but will do so only upon compromise and leadership by Germany. Indeed, although a hawkish stance is likely to be adopted by the Austrian government in any negotiations, its own interests are best served if eurozone financial and macroeconomic stability is restored.

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Key Risks To Outlook:

Should a political solution to the eurozone's burgeoning debt crisis continue to prove lacking, it could have a severely negative effect on economic confidence in the region, which would result in a more acute economic downturn in the region. This would undoubtedly push Austria back into recessionary territory as domestic and external economic conditions would sour.

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