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Economic Indicator: 2011 Brings More Dynamism to Austria's Economy

Published: February 17, 2011; 01:22 · (Vindobona)

Economic recovery has stabilized rapidly in Austria. The Bank Austria Business Indicator has climbed to a three-year high.

Economic Indicator: 2011 Brings More Dynamism to Austria's Economy / Picture: © Flickr

"Nothing is to be seen anymore of the worsening of the economic climate that emerged in the late fall of 2010. The Austrian economy presents itself in radiant shape after the turn of the year", says chief economist Stefan Bruckbauer.

The Austrian economy ends 2010 seamlessly with the gratifyingly dynamic end of the year results, with a GDP growth of 0.6 % compared with the previous quarter, enabling the economic growth of 1.9% for the whole year.

The rising mood in the export-oriented industry and the sharply increasing number of new orders at the beginning of the year, but also the clearly bigger stock of orders in the industry, suggest this. Domestic demand in the first quarter will also make a significant contribution to growth. A continuation of the moderate but steady upward trend is expected for private consumption due to the continued favorable performance of the labor market. Especially concerning investments, the existing backlog should show a significant increase in the coming months.

Due to the continued favorable outlook for exports, and particularly the improved investment expectations, the growth forecast for 2011 has been increased to 2.3%. Austria is therefore one of the fastest growing countries in the euro area, according to the report.

The boost from abroad has increasing consequences on the domestic economy in 2011 and heightens the prospects for self-supporting, sustainable growth of the Austrian economy. While the foreign demand contributed nearly 80% to the economic growth last year, domestic demand will be responsible for slightly more than half in 2011.