Austrian economy to grow faster than expected: institutes

Source: Xinhua| 2017-09-30 03:25:41|Editor: yan
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VIENNA, Sept. 29 (Xinhua) -- Two of Austria's leading economic research institutes significantly boosted their growth prognoses for the domestic economy in new reports released on Friday.

The Austrian Institute of Economic Research (WIFO) increased its 2017 GDP growth prognosis from 2.4 percent in June to now 2.8 percent, that it said would make it the highest growth rate in the past six years.

For next year, it also increased its forecast from 2 percent to 2.8 percent.

The Institute for Advanced Studies also expects a notable improvement, up from its earlier forecast of 2.2 percent, to now 2.6 percent. For 2018, it lifted its expectations from 1.7 percent to 2.1 percent.

In comparison, 2016 saw GDP growth of 1.5 percent.

Both institutes said that with the global economy on an upswing, investments and exports should see a significant boost, and while this will lead to a decrease in unemployment, the overall unemployment rate will still remain relatively high.

WIFO expects it to be 8.5 percent by Austria's domestic calculation method this year, and 8.1 percent next year, while IHS anticipates 8.6 percent in the current year and 8.3 percent in 2018.

In 2016, the unemployment rate was calculated at 9.1 percent.