VIENNA, (PNA/Xinhua) — The Austrian economy is set for recovery and is expected to grow 1.75 percent in 2014 on the back of increased exports, experts said Friday.
Weak domestic demand would dampen further improvement, however, Austrian Institute of Economic Research (WIFO) and Institute of Advanced Studies (IHS) said in their economic prognoses.
The labor market would remain weak — something that could worsen further.
To further improve the situation, both institutes put forward six key priorities these said Austria needs to focus on to strengthen its international competitiveness.
These include education, innovation, research and development, tax cuts and reduction in labor costs.
Top importance should be given to reducing the budget deficit and debt, the experts agreed.
WIFO Director Karl Aiginger said the Austrian budget’s on course for “zero deficit by 2016.”
He pointed out bank rehabilitation costs as well as public sector spending must be factored into this.
The public sector accounts for 50 percent of GDP spending and needs to be reigned in, he added.