Country Economic Forecasts - Austria
The Austrian economy had a mixed start in Q3 after growing by 0.5% in Q2. July retail sales fell for a third consecutive month as rising inflation dragged on real incomes. But exports posted a solid gain in July and surveys showed further signs of stabilising in August. Overall, we expect the economy to grow at a steady rate in Q3 and Q4, as robust domestic demand offsets weakening global trade. We have nudged up our GDP growth forecast for 2018 to 2.9%, while for 2019 we have raised it to 2.0% from 1.5% as updated population forecasts imply higher potential output given less of a demographic drag on labour supply.