Austrian economy slows down

Vienna, Aug 15 (IANS) The Austrian economy grew a mere 0.2 percent in the second quarter of 2012, the Austrian Institute of Economic Research (WIFO) reported.

The figure was down from 0.5 percent growth in the first quarter, although in line with analysts' expectations, reported Xinhua.

"The economy has cooled considerably, though in comparison to the recession in the European area, we could see this development as relatively good," WIFO researchers tasked with calculating GDP figures for the Austrian government explained.

WIFO expert Marcus Scheiblecker told Austria Presse Agentur that the Austrian as well as German economies would shrink in the third quarter, followed by a period of either negative or zero growth. He added it would be a "definite recessive phase".

Scheiblecker said forecasts of 0.6 percent and 1.3 percent growth in 2012 and 2013 respectively depends on the eurocrisis being solved.

"We had expected a solution to the euro debt crisis somewhat quicker," he said, adding the problem was "burdening Austria more and more".

Scheiblecker said despite the crisis, Austria and Germany have been able to profit from relatively strong markets outside of Europe, but that an eventual slowdown "has been implicit in our prognosis".