Austria’s economy, reliant on exports to other euro area countries, will expand less than anticipated this year on persistent weakness in the monetary union, the state-supported Wifo research institute said.
Gross domestic product, the sum of all goods and services, will only grow 0.4 percent compared with a previously estimated 1 percent, the Vienna-based group said today in a statement. Growth in 2014 is forecast to accelerate to 1.6 percent, also less than the previously forecast 1.8 percent.
“First-quarter leading indicators that showed economic improvement failed to materialize,” Wifo said. “The economic development in Europe, especially in the euro area, remains particularly weak.”
Austria’s economy relies on exports from companies like Voestalpine AG, the maker of specialty steel, and Andritz AG, the world’s No. 2 hydro-power-turbine maker. Wifo scaled back projected export growth in 2013 to 1.8 percent from a previously forecast 3.8 percent.