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Read the latest headlines about Austria's economy, including news on inflation, growth domestic product (GDP), nation's debt and labor market
Austrian Economic News and Analysis
International Congresses: Vienna Worldwide Number Two - UN Events Contribute 7% of Conference Nights
The Vienna meetings industry progresses from record to record. With 186 meetings, Vienna remains behind Paris with 196 meetings, number 2 in the Worldwide Ranking of the ICCA (International Congress and Convention Association). In the year prior to that, Vienna was still in fifth place. The proportion of congresses that can be allocated exclusively to the United Nations is enormous and accounts for around 7% of overnight stays.
April 24, 2018
Tourism: Vienna Achieves New Record Number of Overnight Stays
Vienna recorded a new tourist record in March with an increase of 8.5% compared to the previous year. The number of guest overnight stays rose to 1,169,000. Most of the tourists came from Germany, Italy, Russia, Spain, the UK and Switzerland.
April 19, 2018
Repatriation of Austrian Gold Reserves Nearing Completion
This year, and not in 2020, the OeNB Austrian National Bank is already concluding its repatriation campaign for half of its gold reserves. By the end of the year, 140 tonnes of gold are to be stored in Austria, with the other 140 tonnes remaining in London (84 tonnes) and Switzerland (56 tonnes).
March 30, 2018
Annual Report of the European Commission: How did Austria do?
The European Commission presented its annual reports on 27 EU member states. How did Austria do? Well, it kinda ended up with a black eye. The report took a pop at Vienna for a number of structural shortcomings, including tax burden on labour, pension and healthcare expenditures, house prices, restrictive regulation in the services markets, stagnating productivity and and not enough action on spreading digital technologies. That isn’t a particularly good report card for the previous coalition government of ÖVP und SPÖ. Let’s see if the new coalition government of ÖVP und FPÖ can make the grade the next time around.
March 11, 2018
How do Russian Politicians and Oligarchs Withdraw their Money from Austria?
The Russian money nobility has begun to repatriate large amounts of its western-hoarded money back to Russia in order to deprive it of access by Western authorities. The countries of origin are above all Switzerland, but also Austria and Great Britain. Sberbank, Russia's largest and state-owned bank, speaks of an atypically high capital inflow to Russia. Within a few weeks, a tripling of such repatriation transactions took place compared to the same period of the previous year. The sum is hundreds of millions of dollars. The average transfer amount has increased within a year by 50% to 3 million dollars. This meets with the Kremlin's desire to repatriate Russian assets.
February 22, 2018
Austria's Economic Upturn will Continue in the First Half of 2018
The Austrian National Bank expects GDP growth of 0.8 percent for the first two quarters compared to the previous quarter. The economic momentum is unbroken.
February 22, 2018
Moody's Lifts Outlook for Austrian Banks
Moody's lifts outlook for Austrian banks on positive, because the economic recovery in Austria makes it possible to improve the outlook for domestic banks.
August 24, 2017
Social Progress Index: Austria Ranked 13th
Austria has been ranked 13th by NGO Social Progress Imperative, in its Social Progress Index ranking. It precedes Japan and Germany and scored many points thanks to renewable energy projects. However, the state reveals shortages with respect to education, tolerance and equal opportunities. Nordic states, such as Finland, Canada and Denmark lead the index.
July 25, 2016
OSCE: "Reliable, Affordable and Sustainable Energy Supplies are Prerequisite for Stability and Security"
Energy experts from the OSCE Mediterranean Partners for Co-operation, representing both government institutions and private sector companies, will begin a week-long field study of sustainable energy in Austria and Germany.
July 12, 2016
Brexit and Its Consequences for Austria
Like any other economy within the euro area, Austria will also be confronted with challenges following the Brexit vote, according to the latest analysis by RBI Research analysts. However, the economic momentum should not experience any noticeable weakening, even though one should expect considerable declines in exports to the United Kingdom.
July 1, 2016
CESEE Outlook: Modest Recovery - EU is Obstacle to Growth – BREXIT Poses Uncertainties
According to the latest prognosis of the Vienna Institute for International Economic Studies, the countries of Central, East and Southeast Europe (CESEE) will have a trend growth rate of up to 3% in the period of 2016-2018. This is 1-1½ percentage points higher than average growth in the eurozone. Consumption will be the main growth driver. The Austrian economy is still benefiting from its economic ties with the region. Direct effects of BREXIT on the region will be limited – indirect effects for the European economy as a whole may be considerable.
June 29, 2016
Agenda Austria Recommends Campaign Against Öxit
Think tank Agenda Austria recommends the government in Austria to devise a large campaign against an Austrian exit ("Öxit”), highlighting the benefits of EU membership, since the experts anticipate an increase in discussions concerning this issue.
June 27, 2016
Moody’s Downgrades Long-Term Credit Rating of Austria
Moody’s has downgraded the long-term credit rating of Austria, from "Aaa” to Aa1. In January 2012 rating agency Standard & Poors had reduced Austria’s rating from AAA to AA+, whereas in February 2015, Fitch did the same.
June 27, 2016
Austrian Business Meets Foreign Diplomacy
In the context of the ‘Business meets Diplomacy’ series of events, representatives of the Austrian economy meet members of the foreign diplomatic corps for an exchange of views on Austrian business and the economy.
June 20, 2016
VSE and CEESEG: Heimo Scheuch to Serve as New Chairman of the Supervisory Board
Changes in the supervisory board of Wiener Börse AG and CEESEG AG have taken place and a new executive committee was elected. Heimo Scheuch, CEO of Wienerberger AG, will serve as Chairman of the Supervisory Board. Angelika Sommer-Hemetsberger, member of the Management Board of Oesterreichische Kontrollbank AG, was elected Vice-Chairwoman of the Supervisory Board.
June 15, 2016
IMD Competitiveness Ranking: Austria Edged Up to Rank 24
According to the latest issue of the competitiveness ranking established by Swiss research facility Instituts für Management-Entwicklung (IMD), Austria edged up from rank 26 to 24 y/y in 2015.
May 31, 2016
Bawag Laying Off Further 180 to 200 Employees
Bawag Bank will optimize its branches and in course of the process will cut 180 to 200 jobs. 70 to 80 of the affected employees are supposed to be sent back to their actual employers - Post AG.
May 3, 2016
Business Indicator: Modest Acceleration in Austrian Economic Activity Despite Growing Global Risks
According to Bank Austria, the Business Indicator rose in March to 0.2 points - back in black for the first time since September. Also, Bank Austria recognized a light improvement in consumer and industrial sentiment. The estimated economic growth in 2016 is 1.5 percent - no further pick-up is expected for 2017.
April 20, 2016
India-Austria Bilateral Foreign Trade Volume Increases to EUR 1.40 Billion
Last year was a very good year for India-Austria foreign trade. Experiencing a much faster growth rate than Austria’s overall trade, Austria imported items amounting to EUR 702 million from India and exported a volume amounting EUR 700 million to India.
April 20, 2016
Discuss with Jeffrey Sachs Migration and Global Inequalities
Professor of economics Jeffrey D. Sachs will visit Austria on March 10th to give a lecture on migration and global inequalities. The lecture will take place at Vienna's Institute for Human Sciences.
March 2, 2016
Purchasing Managers' Index: Austrian Industry Defies Market Turbulence and Economic Worries
Bank Austria has published its latest "Purchasing Managers' Index" on the Austrian economy. In spite of the recent turbulence on the market and the growing economic concerns, Austrian industry is in good shape at present. Austrian industry has been enjoying an upwards trend for roughly a year now. The increase in Bank Austria’s Purchasing Manager’s Index to 51.9 points in February shows that following a dip before the turn of the year, growth has picked up again since the start of 2016. Despite the tense mood on the markets, Austrian industry is still providing good real economic data.
March 1, 2016
Austrian Business Delegation to Visit India - Results
Austria's business delegation has returned from a five-day visit to India. What did they achieve?
February 23, 2016
Austria's Industrial Production Increases in Early 2016
Bank Austria has published its latest "Purchasing Managers' Index" on the Austrian economy climbs to 51.2 points in January. The Austrian industry should enjoy a dynamic start to the new year. More orders ensure major production expansion. A sharp decline in price of commodities boosts earnings. At the same time, production not at full capacity, too few new jobs being created and ongoing economic uncertainties leading to targeted cost and inventory optimisation.
January 29, 2016
Central and Eastern Europe's Financial Elite Gathered at the CEE Forum in Vienna
The 21st Euromoney Central and Eastern European Forum ended in Vienna today, where 1000 delegates from the region joined local and international investors to help plan, debate and analyze the economic agenda for the region for the year ahead. The vast majority of the delegates have a negative outlook for the year 2016. Only one of the participants expects that this year CEE will grow more than 3.5%.
January 20, 2016
Business Indicator: Recovery in Austria to Pick Up Momentum in 2016
According to Bank Austria, the Business Indicator fell again in November. Now sitting at -0.3 points, the indicator has reached its lowest reading of 2015 just before the turn of the year. Despite this downward trend Bank Austria assumes that the Austrian economy will have maintained its moderate growth trajectory at the end of 2015.
December 18, 2015
UniCredit Final Restructuring Program on Bank Austria's Retail Business
UniCredit announced a major step in its strategic plan execution, by launching a profound restructuring program on its Austrian retail business that will enable Bank Austria to develop its business in a sustainable way, while bringing down significantly its cost income ratio. The restructuring plan will allow to reduce by 2018 Bank Austria's overall costs by € 150mn per year on an ongoing basis on top of the Strategic Plan and with main focus on personnel expenses, leading to an overall cost decrease by almost € 300mn versus 2014 in order to ensure the business sustainability in the long-run.
December 15, 2015
IMF Report: Austria Should Make Cuts in Healthcare, Education, Pensions, Banks Should Raise Equity
Austria's outlook suggests a moderate improvement. The latest IMF report recommends Austria to conduct broad cuts in such areas of spending as healthcare, education and pensions. Also, Austrian banks should raise equity. Unemployment, although rising, has remained moderate at below 6 percent. Strengthening private consumption, investment, and exports are expected to raise growth to about 1½ percent in 2016. The current account surplus exceeds 2 percent of GDP thanks to sustained price competitiveness and robust tourism inflows. The authorities have made significant progress in revamping the regulatory framework for the banking sector. However challenges remain and further measures need to be taken. Therefore the IMF suggests three policy priorities: expenditure reforms, integrate immigrants into the Austrian economy and further strengthen financial sector resilience.
December 14, 2015
Purchasing Managers' Index: More Moderate Industrial Growth in November
Bank Austria has published its latest "Purchasing Managers' Index" on the Austrian economy. The Austrian economy should manage to keep better pace with European and German growth rates in 2016. With the momentum of the recovery in Europe, the industrial sector in Austria has already improved since the beginning of autumn. In spite of a weaker result compared to the previous month the Bank Austria Purchasing Managers’ Index amounts 51.4 points. This still clearly indicates growth for Austrian industry, which in the meantime has largely caught up with the pace of growth in Europe.
December 3, 2015
VIG: Elisabeth Stadler to Replace Peter Hagen as CEO
Due to differences in opinion regarding the future strategic orientation and steering of the Group, Peter Hagen will be leaving his position as Chairman of the Managing Board of the Vienna Insurance Group on 31 December 2015. Elisabeth Stadler will become his successor.
December 2, 2015
Business Indicator: Austria's Economy Grows by 0.9 Percent in 2015
Bank Austria has published its latest "Business Indicator" on the Austrian economy. At the beginning of the final quarter of 2015, the already moderate economic recovery in Austria seems to have lost speed. The Bank Austria Business Indicator slipped into the red in October. A sharp decline in consumer sentiment has pushed the indicator to its lowest level in eight months, despite the continual increase in confidence within industry. In addition to a slowdown of economic activity in Austria in the meantime, the opposing trend in domestic and foreign demand can still be seen in the recent Bank Austria Business Indicator. The different developments of individual sentiment components highlight the fact that neither consumption nor investment activity have gained momentum, but demand from abroad is slowly increasing. The opposing trends in domestic economic activity and foreign demand appear to have strengthened in Austria for the time being.
November 18, 2015
Bank Austria Posts Net Profit of EUR 660 Million for the First Nine Months
UniCredit Bank Austria announced that net profit in the three months to end-September dropped to 172 million euros from 291 million in the previous three months. As reported, the bank plans to terminate up to 14,000 jobs and restructure or exit its retail business in Austria and leasing operations in Italy as it seeks to strengthen its equity.
November 11, 2015
UniCredit - Bank Austria: CEE Operations Move from Vienna to Milan - Retail Business to be Sold or Restructured
Until the end of 2016, all CEE interests with currently 48,000 employees have to be transferred to Milan. Until now this division has been the most important earner for Bank Austria. The 13 banking subsidiaries of Bank Austria in Eastern and Southeastern Europe employ nearly 48,000 people - and thus the majority of the approximately 57,000 employees of Bank Austria. The retail banking business of in Austria with 1.6 million customers has to be sold or restructured, Unicredit announced in the afternoon.
November 11, 2015
Purchasing Managers' Index: Pace of Austria's Industrial Growth Increases
Bank Austria has published its latest "Purchasing Managers' Index" on the Austrian economy. At the end of the first quarter in 2015 subtle signs of a pick-up in Austrian economic activity were detected for the first time in about six months.
October 30, 2015
Recommendations from the EU to Help Austria Improve Its Economic Performance
The Austrian economy has stagnated since the second quarter of 2012. Energy prices have helped lower inflation, but core inflation is stable. The labour market has performed strongly, but challenges lie ahead. Fiscal consolidation has slowed down in 2014 due to the cost borne by the government for the financial sector, which translated into higher deficit and debt ratios. Despite a solid, but moderate current account surplus, Austria has suffered a pronounced loss in world trade market shares. While the economy is free of major imbalances, maintaining competitiveness and long term growth prospects requires constant attention and consistent policy efforts. The Commission has made four country-specific recommendations to Austria to help it improve its economic performance. These are in the areas of public finances, taxation and pensions, labour market and education, services, and the financial sector.
October 26, 2015
Austria's Economy Undergoing a Very Modest Recovery Despite Increasing Uncertainties
Bank Austria has published its latest "Business Indicator" on the Austrian economy. Despite increasing global uncertainties, the recovery of the Austrian economy is continuing into the start of autumn. The Business Indicator remained the same in September at 0.1 points compared to the previous month. The improved confidence in domestic industry as well as an increased tailwind from Europe compensated for the deterioration in consumer confidence.
October 19, 2015
Life Sciences Field is Booming in Vienna
Nine percent revenue growth, five percent increase in the workforce and a large increase in business startups - Vienna as a location for life science businesses is attracting companies at a rate never seen before.
October 14, 2015
CEE in the Autumn of 2015 is the New Safe Haven
The key conclusion of UniCredit’s CEE Quarterly 4Q 2015 is that the CEE region, despite its heterogeneity, looks better positioned than most other large emerging markets to cope with potential challenges. In particular they found that market volatility spiked in 3Q15, with the uncertainty surrounding the anticipated Fed rate hike augmented by growing worries about a “hard landing” in China.
September 25, 2015
Austrian President Fischer is First European Head of State to Visit Iran
Austrian President Heinz Fischer is the first European head of state to visit Iran following the successful conclusion of nuclear talks between the Islamic Republic and the P5+1.
September 7, 2015
InEquality: Economic Symposium at Forum Alpbach Launched
The Economic Symposium of the Forum Alpbach has been launched in the presence of business executives, politicians, students and the media. The core topic of this year's conference is InEquality.
September 2, 2015
Expat Insider: Country Report Austria - Safe & Sound
InterNations shares with you a detailed picture of life abroad in Austria: why people relocate, what their daily life is like, and how satisfied they are. Known for schnitzels, mountains, and bodybuilders turned governors, Austria has excellent rankings in the Quality of Life, Working Abroad, and Family Life Indices, but settling in isn't easy. They provide an in-depth country profile of Austria. Read on and find out what expatriate life in your dream destination Austria is actually like.
August 25, 2015
Low Interest Rates are Costing Every Austrian 2,366 Euro
Due to the ongoing low interest rate environment, Austrian savers had to forego around EUR 35.5 billion in interest income over the past five years (2010-2014). On average this amounts to approx. 4,156 euro per capita. Of this, interest earned on deposits alone on average amounted to EUR 24 billion less than in the years 2005 – 2009. Anyone who invested his money in residential real estate has reason to be pleased, as prices have risen by more than a third since 2009. On stock exchanges significantly larger gains could be achieved as well, but only 3.3% of Austrians are directly invested in equities.
July 21, 2015
Austrian Economy is Underperforming the Eurozone Average
Ernst & Young's latest analysis on the Eurozone forecasts that the Austrian economy is to grow 0.7% in 2015, underperforming the Eurozone as a whole for the second consecutive year. Investment is expected to remain subdued, while the contribution of exports will be only marginal as a consequence of the modest external environment.
June 24, 2015
Mostboeck: "ATX Valuations Remain Attractive - Catch-Up Potential until Year-End"
The majority of companies in the ATX had to report significant earnings revisions in 2014. In addition, geopolitical risks in the context of the Russia/Ukraine conflict exerted a negative effect. “The significantly improved environment and the digestion of last year's one-off effects are creating notable catch-up potential for the ATX”, notes Fritz Mostböck, Head of Group Research at Erste Group.
June 23, 2015
European Forum Wachau: Political Leaders Discuss Europe's Limits
The European Forum Wachau is a European debate event and will be held this weekend at the Stift Göttweig in Lower Austria. The event was launched in 1995, the year of Austria's accession to the European Union. Participants of the conference titled “Has Europe reached its limits? Reflections on Europe’s future role on the global stage” will discuss topics such as, the EU as a security provider, the EU's new mode of regional cooperation and the EU and her neighbours.
June 12, 2015
Bilderberg 2015: Full List of All 133 Participants
The full list of all 133 attendees to the top secret Bilderberg Group conference 2015 has been released (see below). The Austrians participating are René Benko, Oscar Bronner, Heinz Fischer, Alfred Gusenbauer, Erich Hampel, Wolfgang Hesoun, Gerhard Roiss, Rudolf Scholten and Karl Sevelda.
June 12, 2015 · Updated: June 12, 2015; 17:45
The Bilderberg Group - Background and Criticism
The first Bilderberg conference dates back to May 1954, when it was held at the Hotel de Bilderberg in Oosterbeek, Netherlands. Partly because of its working methods to ensure strict privacy, the Bilderberg Group has been criticised for its lack of transparency and accountability.
June 11, 2015
Bilderberg 2015: The "World Government" Meets in Austria
A select group of global elite is gathering today at the Interalpen-Hotel Tyrol in Telfs-Buchen, Austria. The 63rd Bilderberg conference is a super secret annual conference where they can discuss politics, economics and foreign policy freely. A total of around 140 participants from 22 countries have confirmed their attendance at the Bilderberg conference 2015. As ever, a diverse group of political leaders and experts from industry and finance have been invited. This year the list includes nine Austrians. Key talking points on the agenda include the Ukrainian crisis, Greece, Middle East and Terrorism (see detailed list below). Security is tight - participants as well as protesters and journalists will have to deal with the Austrian anti terror squad "Cobra". After 1979 it's the second time that the conference takes place in Austria.
June 11, 2015 · Updated: June 11, 2015; 19:00
Analysis: Austrian Economy Falls Behind Eurozone Average
The latest "Attractiveness Survey" from consultancy Ernst & Young Global Limited shows, that espite strong fundamentals, Austria’s economy lost some ground on the Eurozone average in 2014, with growth of just 0.4% compared with 0.9% for the Eurozone as a whole. This comparative weakness will also continue in 2015, with Austria’s GDP growth estimated at 1.1%, against 1.5% in the Eurozone. This is despite a boost from lower energy prices, quantitative easing from the European Central Bank (ECB) and a weaker euro.
June 1, 2015
EBRD Sees Mixed Outlook for CESEE Countries in 2015-16
The outlook for economies in central and south eastern Europe is improving on the back of eurozone monetary easing but prospects further to the east of the transition region have worsened, as the impact of Russia’s recession intensifies.
May 14, 2015
Purchasing Managers' Index: Austrian Industry Shows First Signs of Recovery
Bank Austria has published its latest "Purchasing Managers' Index" on the Austrian economy. At the end of the first quarter in 2015 subtle signs of a pick-up in Austrian economic activity were detected for the first time in about six months.
May 5, 2015
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