Austria: Strength in times of weakness – ING

Inga Fechner, economist at ING, points out that the Austrian GDP grew by 2.7% YoY over the entire year 2018, slightly lower than expected, but exceeding the previous year’s GDP growth by 0.1 percentage points.

Key Quotes

“In the final quarter of 2018, growth remained broad-based with domestic demand and foreign trade contributing positively to growth.”

“Household consumption expenditure rose by 0.3% QoQ in the fourth quarter compared to a first half of the year average of +0.4%, remaining a pillar of strength, while public consumption grew sluggishly at +0.1% QoQ.”

“While the growth outlook is slowly deteriorating, Austrians still expect a better financial outlook for the year 2019 as shown in an ING survey. Some 35% see themselves in a good to very good financial position in the year ahead, while 39% estimate their financial position as neither good nor bad.”