Austrian economy ‘in good position’ as OECD predicts growth

People’s Party (ÖVP) Economy Minister Reinhold Mitterlehner claimed Austria was “positioned to achieve sustainable growth” as the Organisation for Economic Co-operation and Development (OECD) predicted a bright future was ahead for the country’s economy.The body announced today (Weds) it expected Austria’s economy to grow by 1.4 per cent year on year in 2010. Its most recent forecast claimed the country’s economy could expect a year on year growth of just 0.9 per cent.The OECD also said Austria’s economy will grow by 2.3 per cent year on year in 2011 after recently claiming 2.2 per cent annual growth was ahead.Mitterlehner welcomed the good news. “These figures confirm that Austria is well positioned to achieve sustainable growth,” he said.The minister added he was especially optimistic since Austrian exports were set to rise again after dwindling figures in the worst period of the economic crisis.Mitterlehner however also appealed to “act more efficiently” as the government said it needed to reduce the soaring state debt.”We need to act more efficiently and save costs in an intelligent way. It is important not to axe rising consumption by too drastic measures,” he warned.Viennese think tank Institute for Economic Research (WIFO) recently said the Austrian economy failed to grow in the first quarter of 2010 compared to the last quarter of 2009.WIFO earlier this year corrected its 1.5 per cent growth forecast for the Austrian economy made last December to 1.3 per cent, while the Institute for Higher Studies (IHS) – Austria’s other leading think tank – said it would stick to its 1.3 per cent year on year growth prediction.Austrian political and economic leaders especially focus on Asia as far as exports are regarded.President Heinz Fischer was accompanied by a high-profile business delegation on his state visit to China in January.Social Democratic (SPÖ) Chancellor Werner Faymann pointed out China’s “important role in crisis times” for Austria’s economy during his visit to the Austrian pavilion at the Expo 2010 in Shanghai last week.He said: “Trade with most partners receded in the crisis, while it didn’t with China. The country has had a key role for the Austrian economy and will be even more important in the future.”OECD said today China’s economy will grow by 11.1 per cent year on year in 2010 and by another 9.7 per cent next year. The international institution also said that India can brace itself for a 8.3 per cent growth rate this year and an annual plus of 8.5 per cent in 2011.