Long-term economic models are gaining in importance in the European Union. They enable cross-country comparisons as well as provide an as-is snapshot for policy makers. But demographic projections and forecasts of future labour force participation rates involve uncertainties and a number of...

While short-term prospects for the Austrian economy have weakened since last June's forecast revision, the pattern of risks is somewhat uneven as external downward risks slightly dominate domestic upward risks. Against this background, Austria's GDP is expected to grow by 0.6 percent in 2012 and...

With a modest increase of premium revenues by 1.1 percent in 2011, growth of Austria's private insurance companies remained below that of nominal GDP (+5 percent). Performance within the sector was uneven: while premium revenues in property-liability and accident insurance rose by a hefty 7.2...

The European Commission, newly constituted after the EU elections, has been launching its work for the period of 2014-2019. The bank stress test shows that 25 of the 130 European banks tested are in a problematic situation. One of the five Austrian banks tested does not meet the requirements....

Following a cyclical downturn in 2014, the Austrian economy is set to grow at a moderate pace of 1.3 percent p.a. over the period from 2015 to 2019. Private consumption and investment will experience a sluggish growth, while the external contribution to GDP growth will remain modest. The gradual...

After the stagnation prevailing since spring 2014, economic activity in Austria will remain subdued also in early 2015. Leading indicators have lately given no firm hopes for a cyclical rebound. From a short-term perspective, the conditions for a normal recovery of demand and output in Austria...

The marked decline of oil prices gives some impetus to business activity in the euro area. However, medium-term prospects are dominated by lack of aggregate demand and very low inflation; moreover, the lacking possibility of currency de- or re-valuation, notably the under-valuation for Germany,...

Surprisingly manufacturers expect to boost their investments substantially in 2015. Considering the weak recovery and an economic situation that has hardly improved at all it is unlikely that their expectations will come true. In 2014, manufacturers raised their investments by 10 percent,...

After the slow pace recorded in 2014, growth of the Austrian economy is likely to remain modest also in early 2015. Leading indicators to date give no substantial hint for a revival of business activity. Hence, the conditions for a cyclical recovery during the first half of the year are hardly...

The European Central Bank starts to purchase government bonds of euro-zone countries; the Expanded Asset Purchase Programme (EAPP) is intended to increase liquidity in order to ward off the risks of a prolonged low inflation phase. Greece requires more financial aid. The sanctions imposed by the...