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Slight Slowdown of Austria’s Economy

Published: January 22, 2011; 11:39 · (Vindobona)

According to the Austrian National Bank (OeNB), economic growth slowed down temporarily at the turn of the year.

Slight Slowdown of Austria’s Economy / Picture: © OeNB

The results of the OeNB economic indicator show a growth of 0.4% for the real GDP in the fourth quarter of 2010. The OeNB considers this as a not atypical and only temporary slowdown after a period of strong growth, not unusual for a recovery period. This is definitely not a sign of a renewed collapse of the economy.

Although goods exports to the new EU Member States had a stabilizing effect, total goods exports already declined in September compared with the previous month, and remained at the same level in October. The decline affected exports to almost all regions of the world, but especially to Asia.

Regarding domestic demand, the long-term decline in investment turned back to positive in the third quarter for the first time, and this trend should continue in the coming quarters due to high capacity utilization and the excellent order situation. Industrial production, also weakened slightly in synchronism with exports in September and October, and real retail sales stagnated.

For the first quarter of 2011, the OeNB expects a growth acceleration of 0.5%. Compared with the same quarter of the previous year, the fourth quarter of 2010 shows a growth of 2.5%; in the first quarter of 2011, the annual growth rate will rise to 3.0%. On this basis, a growth of just under 2% is to be expected for the full year 2010.