In 2019 Austrian economic growth is expected to decelerate after a robust performance in 2018, mainly due to weaker external demand and lower investment.
Modest insolvency increase expected in 2019
Accelerated economic growth led to decrease in insolvencies in 2017 and 2018. However, in line with a more modest GDP expansion in 2019, business failures are expected to increase slightly.
Lower GDP growth in 2019 as exports lose steam
Austrian GDP growth accelerated to 2.8% in 2018, mainly fuelled by robust growth in investments and exports. At the same time decreasing unemployment and elevated consumer confidence sustained private consumption.
In 2019, the economic expansion is expected to decelerate to around 1.5%, due to weaker exports as well as decreasing investment and lower industrial production growth.
The indebtedness of the non-financial private sector remains moderate compared to that of other advanced countries. However, the banking sector has a big exposure to countries in Central and Eastern Europe.