Weak economic growth in 1Q2024, inflation declines
After a recession in 2023, the Austrian economy shows slight signs of recovery in 1Q2024. Nevertheless, we expect only extremely moderate growth in 2024. Inflation is further declining due to price dampening energy prices, but also to moderately rising food prices. However, inflation in the services sector is likely to keep inflation on an elevated level. At the June meeting, the ECB Governing Council lowered the key interest rates by 25 basis points. Yields on German government bonds have risen from low levels. Yields on 10-year Austrian government bonds have been trading at above-average risk premiums compared to German yields since 2022.
|
Download PDF (912kB)
