Austrian industry will likely go into recession by the end of the year and will remain there until spring, the Federation of Austrian Industries (IV) said on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 25th July, 2023) Austrian industry will likely go into recession by the end of the year and will remain there until spring, the Federation of Austrian Industries (IV) said on Tuesday.
The organization surveyed 431 Austrian companies regarding their assessment of the current economic situation and their expectations. The calculations of its economic barometer model, which compares positive and negative assessments of economic conditions at the moment and for the next six months, resulted in zero, compared to +10.7 in the previous quarter. It indicates that companies are concerned for their future and do not expect the economic situation to improve for at least six months.
"From the macroeconomic point of view, everything we see today points at the lingering stage of economic stagnation," IV Director General Christoph Neumayer said, adding that Austrian industry must prepare for a recession by the end of the year.
In order to limit the impact of the recession, Neumayer proposed stimulating private investments, as the Austrian government did during the COVID-19 pandemic.
IV's chief economist Christian Helmenstein, commenting on the organization's analysis, said that the situation in the Austrian industrial sector has been deteriorating despite positive dynamics in some spheres. He did not predict any improvements before the spring of 2024.
Austria, along with other European countries, has been facing inflation and a massive energy crisis as part of the post-pandemic global economic recession. The situation has further exacerbated against the backdrop of the Ukraine crisis as hostilities and Western sanctions against Moscow have led to disruptions to supply chains and resulted in a spike in energy prices worldwide.