WIFO says industry will do well in Q2

Austria’s economy will recover in the second quarter of this year, a leading think tank has predicted today (Thurs).Vienna-based Institute for Economic Research (WIFO) said the country’s industrial branch’s engagement will soar by three per cent to 79 per cent compared to the first three months of 2010.WIFO said engagement will continue to increase. “The positive aspects should outweigh negative developments over the next few months,” a spokesman for the body said.WIFO also said that the construction branch is currently “stagnating on an average level”, while the tourism branch was doing better than in early 2009.Bank Austria (BA) chief economist Stefan Bruckbauer said last month he expected the country’s industrial branch to grow “by at least four per cent” this year compared to its performance last year.WIFO recently corrected its 1.5 per cent growth forecast for the Austrian economy made last December to 1.3 per cent recently, while the Higher Studies (IHS) – Austria’s other leading think tank – said it would stick to its 1.3 per cent year on year growth prediction.The European Commission (EC) said yesterday it expected Austria’s economy to grow stronger than the European Union (EU) average as it predicted a 1.3 per cent year on year improvement in 2010. EC announced the EU’s economy will grow by just one per cent in the same period.