VIENNA, Aug. 14 (Xinhua) -- New Austrian GDP growth estimates of 0.2 percent for the second quarter of 2014 are “disappointing,” the Austrian Institute of Economic Research (WIFO) said in a press release Thursday.
The figures come on top of a downward revision to only 0.1 percent growth in the first quarter, and now leads the Institute to believe the Austrian economy may see real growth of less than 1 percent for the year.
The sluggish growth is largely on the back of restraint in investment from domestic businesses as well as private consumption, while foreign trade only made a weak positive contribution to growth.
Additionally, WIFO said it considers the weak international economy to be to blame, with the ongoing Ukraine crisis dampening the overall mood.
Decreased Russian demand through import sanctions is not expected to affect GDP yet though, as WIFO said farmers are producing goods whether the Russians will buy them or not.