NEWS IN ENGLISH | Austrians 'bullish' about the economy
Austrians 'bullish' about the economy
2019-07-29 19:11:00

Source: Erste Bank
Optimism about economic growth

According to a study by INTEGRAL conducted on behalf of Erste Bank, optimism is the buzzword. In response to the question of how the economy will do this year, 44% expect around the same rate of expansion as in the preceding year and 36% believe the economy will grow even more robustly this year. Only 17% expect the economy to slow slightly compared to 2018. Analysts at Erste Bank expect the growth rate of GDP to slow down to robust 1.7% in 2019. In the preceding year, GDP was 2.7%. This slowdown in economic growth in Austria is in line with the slowing pace of the global economy. Tax reliefs and higher wage growth will increase disposal income and will support private consumption. "However, Austrians should set aside funds for old age, for example, in an investment fund savings plan," said Thomas Schaufler, Retail CEO of Erste Bank.

Investments: Securities remain a constant

Investment funds, stocks and bonds remain attractive to 26% (-3) of Austrian investors. Savings passbooks are still appealing to 59% who plan to put money into this classical savings form in the next 12 months. A percentage of 34% plans to invest in life insurance, 40% (-9) in building society schemes and 28% (-6) in retirement schemes. Gold (15%, -1) and real estate (19%, +1) are also constants in investment planning. More than 8 out of 10 Austrian generally plan to save money this year (81%). On average, the sum earmarked for investments decreased slightly at EUR 4,200 (EUR -600).

Higher loan amounts planned

In contrast to the preceding year, the average amount of loans planned for the future rose by 10% from EUR 64,800 on average to EUR 71,200. The overall share of Austrians planning major investments declined by comparison only slightly to 35% (-3). Remarkable is the trend towards smaller loans of up to EUR 5,000, which increased over the preceding year by 10 percentage points. Nonetheless, the majority (85%) will use funds they have saved to make purchases such as homes, cars, etc.