VIENNA: As tepid export-demand was unable to offset continuing weak domestic demand, Austrai’s economy declined in the end of 2014, said the country’s main economic forecaster.
After growing slightly in the first half of 2014, the Austrian economy stagnated on a quarterly basis in the second half, the Austrian Institute of Economic Research said.
For the entire year, the Austrian economy grew 0.3%, the forecaster said. Previously it had forecast 0.4% growth for the whole of 2014.
On an annual basis, Austria’s economy shrank 0.2% in the fourth quarter, having expanded 0.4% in the third.
The Alpine country’s economy is weighed down by weak domestic consumer demand coupled with restrained investments by Austrian companies.
Demand for Austrian exports rose 0.2% on the quarter, but import demand fell 0.5% over the same period.
A scarcity of credit in many parts of the single-currency area has been a key factor holding back investment, as has a lack of confidence among businesses and households. And while bank lending to households across the eurozone rose in January from December 2014, lending to businesses fell.
