Austria Economy to Grow 1% in 2013, Slower Than Predicted

Austria’s economy is expected to expand 1 percent next year, slower than the 1.3 percent predicted in June, the state-supported Wifo research institute said today.

This is Wifo’s second consecutive reduction of its 2013 forecast, with the institute initially having predicted 1.4 percent growth.

Wifo left its forecast for gross-domestic-product growth unchanged at 0.6 percent for this year, according to an e-mailed statement today.

Even after cutting its guidance for 2013, “Austria’s 1 percent growth rate still will be one of the driving forces in the euro area,” Wifo said in the statement. The country’s “economy can’t quite decouple itself from the international dynamics and this is reflected in the stagnation of exports since mid-2011,” it said. “However, unlike the 2009 crisis, domestic demand has remained relatively stable.”

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