Global economy remains weak
The global economy is expanding only moderately, with industry in particular experiencing a downturn. Due to these unfavourable international conditions, the domestic economy has also cooled considerably. After 2.4 % in the previous year, the Austrian economy is expected to grow by 1.5 % this year and by 1.3 % next year. Inflation should amount to 1.5 % in both years. The unemployment rate is expected to decline somewhat this year, but to rise to 7.5 % next year. The political uncertainties (further escalation of the trade tensions, a disorderly Brexit) as well as potential spill-overs from the weak manufacturing sector to services pose downside risks for the Austrian economy.