Austrian economy shows strong signs of recovery

A leading think tank has claimed the Austrian economy grew stronger than it was initially predicted to do.The Vienna-based Institute for Economic Research (WIFO) announced today (Fri) the country’s gross domestic product (GDP) rose by 2.4 per cent year on year in the second quarter of 2010, adding that this was a 1.2 per cent improvement compared to the first three months of this year.WIFO forecast a 1.9 per cent year on year rise around one month ago.The body announced plans to up its outlook for the whole year considering the recent developments.WIFO said more exports and investments helped the Austrian economy to get back on track after struggling for around two years following the credit crunch. It added that the country also benefited from its low jobless rate of just 3.8 per cent.WIFO, however, also warned that the global economy will grow slower than recently predicted by international economists. The institution pointed out it registered a slowdown in the growth of the economy in the United States and Asia, stressing that this will have a significant impact on economies across the world.