This was due to a lack of economic stimulus, hardly any export increases to Germany, and no increases in investments, according to OeNB head Ewald Nowotny in remarks at the Alpbach political forum in Tyrol province, published on Friday.
The budget deficit for 2014 was expected to be 2.5 percent. Nowotny pointed out that this was in part due to the reorganisation of the ailing nationalised Hypo Alpe Adria bank. Without the bank, the deficit would be 1.1 percent, said the OeNB head.
In 2011, the Austrian economy grew by 2.9 percent. In 2012 it was 0.7 percent, and 0.3 percent in 2013.