Austria’s Economy Fares Well After Financial Crisis
News Brief: Oct. 2010
Compared to the rest of the eurozone, Austria has recovered quite quickly from the aftermath of the financial crisis, according to a forecast published on Sept. 22 by the Wifo (Austrian Institute of Economic Research) and the IHS (Institute for Advanced Studies).
The country has managed a stronger upswing than the other members of the common European currency market, with a growth forecast of c. 2% in 2010. Bigger countries within the eurozone such as Italy or Great Britain are predicted to grow at more slowly at 1.1% and 1.5% respectively.
Germany once more overtook all others with an expected growth of 3%. Austria has had a similarly steady growth rate for the past 8 years and always ended up above the European average of 1.7%. Nonetheless, it is hard to say if the crisis is past or if there are after shocks to be expected.
Despite a good economic cycle and above average taxes being paid, the deficit will be around 4% of the country’s GDP. In 2011 the deficit is expected to drop to 3.5%. However experts fear a new loss of trust in the Euro currency as well as a bad U.S. economy.