In a warning to investors, the Austrian National Bank issued a warning about the increasing economic and business risks that the country will face the first quarter of 2008. The risks are considered to be "above average."
This is according to OeNB Director Josef Christi. Pointing out the US sub prime mortgage crisis may be behind the international financial market risks. He said, of the economy, "Future development of the economy- global as well as domestic-must be carefully watched if we are to react in the right way at the right time," as reported at Wiener Zeitung.at.
In the last quarter of 2007, the growth rate of the economy slipped to 0.7 per cent. The bank estimates that the first quarter of 2008 will see a growth rate of not more than 0.6 per cent.
This drop is due to several factors including the unstable international markets, but also due to the lack of spending by households in Austria. Inflation may rise, slightly, due to the increased energy costs and food prices here.
Of those areas not necessarily affected by the growth slowdown, tourism is not likely to be effected. In effect, tourism is expected to continue to grow strongly through 2008. This comes in with the increase of summer tourism in Austria this past year, as record numbers of visitors were seen. In addition, more winter season visitors have helped to increase tourism here, year round.
Austrian tourism continues to expand throughout the country. Skiing has been a large area of interest, especially to European holiday seekers here, with leading areas in St. Anton. Summer travel often is situated around warm lakes and sports activities, though Zell am See is an important tourism destination for the country as well.
