Wednesday, 23. May 2012

:: Home > Business > Economy growing again

M	T	W	T	F	S	S
30	1	2	3	4	5	6
7	8	9	10	11	12	13
14	15	16	17	18	19	20
21	22	23	24	25	26	27
28	29	30	31	1	2	3

Add your event FREE

Today

Polls

13. 11. 09. - 14:00

Economy growing again

By Lisa Chapman

The economy has grown for the first time in more than a year, the Institute for Economic Research (Wifo) said today (Fri).

It said the economy had resumed growth in the third quarter of this year � 0.9 per cent compared to the previous quarter - for the first time since the second quarter of 2008.

Wifo added Austria had had negative growth of 2.4 per cent year on year as of the end of the third quarter compared to minus 5.3 per cent at the end of the second quarter.

The think tank said the resumption of overall growth had derived from strong growth in exports and the construction industry but warned that it was too early to talk about a resumption of sustainable growth.

Wifo expert Marcus Scheiblecker said: "The positive impact of domestic and international stimulus programmes is becoming apparent."

He said production levels at the end of the third quarter had been lower than a year earlier, adding that exports had increased by 1.4 per cent from the second to the third quarter but had still been 15 per cent lower year on year at the end of the third quarter.

Domestic consumption remained stable and tax reform and low inflation had helped slow the growth of unemployment, the institute said. Scheiblecker also mentioned a 1.3 per cent increase in domestic investment from the second to the third quarter had contributed to the resumption of growth.

People�s Party (�VP) Finance Minister Josef Pr�ll said today the growth showed that the government�s anti-recession measures had worked. "We have steered the ship of state with quiet hands during the past crisis months. Tax reform has made consumption stable. The stimulus packages have had a positive influence on the economy and the labour market."

At the same time, however, he warned it would be "a mistake to talk about sustainable growth".

"The stimulus packages will continue to make their effects felt next year. Our core job next year will be to create the pre-conditions for sustainable and market-driven growth, which I have called Project Austria," he said.

�VP Economy Minister Reinhold Mitterlehner said 2010 would be "a key year" for the Austrian economy and he hoped Austrian exports would be able to increase their market share next year, especially in the Black Sea region.

The news comes just a day after Bank Austria (BA) economists warned that the economy would recover only slowly and lose steam early next year.

They said that growth would accelerate in the fourth quarter but would slow in the first quarter of 2010 because of a continued lack of investment and lower consumption burdening the labour market.

They said what growth there was at present derived from business restocking of depleted inventories that could not continue indefinitely and that weak investment was the result of lack of liquidity at many firms as orders dropped.

Austrian Times

Are you on Facebook? Like the Austrian Times on Facebook and win great prizes!

Your comment to this article :

(will be approved by an editor before going online)

your name
your location
your message
Not for publication:
your mail
How many vertical lines (write the number in letters please ie four not 4) or which Text (from left to right) do you see in this image:
input for security check

Tag cloud:
labour stable economy resumption derived Wifo positive Austria Economy consumption domestic quarter Minister growth Scheiblecker stimulus sustainable exports investment reform

Latest News

Amb�hl at the ready for AUA affiliate
Gaudenz Amb�hl has been named new head of Austrian Airlines (AUA) Group member Tyrolean Airways.

Rebel priest deplores Church's 'leadership crisis'
A Catholic preacher who established a group of "disobedient" priests reacted coolly to Viennese Archbishop Christoph Cardinal Sch�nborn�s warnings.

Hollande's growth appeal 'nonsense', says Fekter
Austrian People�s Party (�VP) Finance Minister Maria Fekter has launched an attack on the new French president.

Best of the bookshelf in May
The Austrian Times has once again searched the book publishing market of German-speaking Europe to list some of the most interesting releases of the past weeks and months.

Salzburg tourism on the rise
The city of Salzburg is more popular than ever with tourists from all around the world new figures have shown.

Suicide Sculptures Get the Push
'Suicide' sculptures by British artist Anthony Gormley are to be removed from Alpine passes in Austria where they sparked fears of a rise in the rate of mountain rescue call outs.

SP� demands legalised street prostitution
Integration spokesperson Anja Hagenauer (SP�) has suggested that "performance boxes" should be constructed in Salzburg to allow clients to park in them and carry out their business with a prostitute.

Luxury shopping at the Kohlmarkt
The Kohlmarkt is the place to look for those luxury goods. The area is home to traditional Viennese jewellers like Wagner, Bucherer and Schullin, as well as resonant international luxury brands. Rare pieces can also be acquired at the Dorotheum auction house.

Agricultural frost damages amounting to 20 million Euro
Freezing night-time temperatures last week have caused substantial damage to farmlands throughout the country, with the largest impact in Lower Austria.

The Sch�nbrunn Palm House
The Palm House in the palace park at Sch�nbrunn in Vienna is the largest of its kind on the European continent.