RTTNews - There are growing signs that the Austrian economy is poised for stabilization, the Bank Austria said Friday, saying that its business indicator is pointing to a sustainable improvement in the business environment.
The Bank Austria business indicator rose to minus 1.8 in July from minus 2.1 in June.
We believe that the renewed quarter-on-quarter decline in GDP of 0.4 % in the second quarter signals the end of the recession, Bank Austria Chief Economist Stefan Bruckbauer said.
The economist forecast the Austrian economy to expand 0.3% sequentially in the third quarter. The bank forecast a full year contraction of 3.5% in 2009.
However, the economists of Bank Austria have serious doubts about the sustainable nature of the recovery. Walter Pudschedl, another Bank Austria economist, said, The economy will again lose some of its momentum when the additional impetus from the fiscal measures and the adjustment of stocks subsides. A noticeable slowdown in economic growth is therefore expected by the turn of the year.
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