Not all countries are going to roar back to recovery. Austria’s economy, along with related exchange traded fund (ETF), may languish for a while until demand for Austrian exports once again resumes.
What’s got Austria in such a funk?
- Austria’s Central Bank estimates the country’s GDP will drop 3.8% in the second quarter and 4.1% in the third quarter, compared to the same periods last year, report Sylvia Westall and Mark Heinrich for Forbes.
- The Central Bank expected an overall 4.2% GDP contraction this year followed by another 0.4% in 2010 because of poor exports and investments. Germany, which usually takes in around a third of Austria’s exports, has not been faring too well.
- The Austrian Higher Study and Economic Research Institute recently noted that the unemployment rate in Austria could reach a record 8.8% in 2010 as the country’s economy remains relatively weak, China View states. Unemployment is currently around 7.7%, up from 5.8% in 2008.
- The institute goes so far as to claim Austria is in such a rut that it will take until 2013 for a recovery. The director of the institute thinks the economy will hover around a 0.5% to 1% gain in 2010. The institute forecasts a low inflation rate of 1.4% by 2013.
- iShares MSCI Austria Investable Mkt Idx (EWO): up 43.5% year-to-date
For more information on Austria, visit our Austria category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.