Austrian economic growth is expected to remain restrained between 2015 and 2019 with an average annual GDP growth of 1.25 percent, the Austrian Institute of Economic Research (WIFO) said on Wednesday.
In its mid-term prediction, WIFO said the growth rate of the economy is expected to run similarly to that of the average Eurozone, and will fall slightly below the average real GDP growth rate of 1.3 percent recorded between 2010 and 2014.
"The slow tempo of the Austrian recovery is mainly due to a weak export dynamic, attributable to the low growth of main economic partners," the research institute said in a press release.
As a result, the willingness of business to invest despite low interest rates, along with income development and private consumption, will all remain mute, said the release.
The unemployment situation will also remain tense, and is forecasted to increase from its current 2015 prediction of 8.9 percent to 9.4 percent (or 5.4 percent by the Eurostat calculation method) by 2017/2018, and then decrease to 9.2 percent in 2019.
The slight economic expansion will provide increase of employment, at an average of 0.8 percent annually over the period of time in question, but will do little to bring relief to the overall situation.
A balanced budget, both by the Maastricht criteria and structurally, cannot be achieved given the predicted economic scenario and relevant economic measures from the government, said WIFO.