Recent data shows a continued decline in economic confidence indicators in Austria

Vienna, May 16, 2017 – The latest economic data issued by Austrian banks showed a continued decline in economic confidence indicators, affected by the repercussions of tensions in the Middle East and their repercussions on European markets, in light of economic pressures resulting from slow economic growth, high inflation, and energy costs.

The Austrian UniCredit Bank announced that the economic index declined last April by 0.5 percentage points, compared on a monthly basis, to negative 1.8 points, recording its lowest level in six months. The bank’s experts attributed the main reasons to a decline in morale in the services and construction sectors, and a sharp decline in consumer confidence.

Stefan Bruckbauer, the bank’s chief economist, expected the repercussions of the conflict in the Middle East to continue to impact Austria’s economy until the winter, and said that the decline in morale at the beginning of the second quarter reflects weak growth prospects in the coming months, in light of the continuing state of uncertainty that negatively affects economic activity and market confidence.

The statement issued by the bank explained that the state of geopolitical uncertainty and the acceleration of inflation as a result of the rise in fuel and energy prices led to a decline in consumer confidence, which reached its lowest levels in two and a half years.

For his part, Walter Bodschedel, an economist at the bank, expected that the gross domestic product would grow by 0.8% in the current year 2026, and that the average annual inflation rate would reach 3%.

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