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Austria’s economy shows only moderate growth in 2012

March 1, 2012

Slight downturn follows upturn of 3.1 % in 2011

All of Austria was quite shocked when Standard & Poors cut its rating on Austrian sovereign debt this January 2012 by one notch from AAA status. Austria's Central Bank governor Ewald Nowotny described the downgrade as "politically motivated" and asserted: "The structure of the Austrian economy is well-balanced; output has been evolving dynamically at above-average rates; Austria has a sizeable current account surplus; and it is the EU country with the lowest unemployment rate (4%)." Read more about the official Austrian response at the OENB press release .

Most economists expect only a moderate economic growth rate of less than 1% for the Austrian economy in 2012, an inflation rate of slightly over 2% and a rise in unemployment to 4.5% or so. Austria’s industrial sector will only raise its output by about 2%, given the weaker global environment. Read more about the current Austrian economic outlook at http://www.bankaustria.at/informationspdfs/AustrianEconomy_02-12.pdf .

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