The National Bank of Austria (OeNB) Thursday reported it expects a slight economic recovery for the country in 2015, though slower than in Germany and the rest of the euro zone.
Following 0.4 percent GDP growth in 2014, the central bank analysts expect 0.2 and 0.3 percent growth for the first and second quarters of 2105 respectively.
They said, however, the actual economic situation was better than the mood of consumers and businesses would suggest, what with the Russia-Ukraine crisis and developments surrounding the troubled bank Hypo Alpe Adria causing concern domestically.
Economic output will improve from the recovery in the euro area, along with low energy prices and the depreciation of the euro against the U.S. dollar and the Swiss franc. Germany, the country's main trading partner, is also currently expanding greatly, the OeNB said.
Industry trends and the export market are also showing positive signs, it said, with its own export indicator showing strong 1.9 percent export growth for the final quarter of 2014.
Domestic demand was weak for most of the fourth quarter, though the outlook improved, with the retail sector recording significant improvement in December and January. Low energy prices have been the most important factor here, driving down the inflation rate and resulting in real wages increasing the most they have in the past five years, the OeNB stated./.