Brexit predicted to cut growth in Austria by 0.5%

Brexit predicted to cut growth in Austria by 0.5%
Ed Everett/Creative Commons
Austria’s Institute for Advanced Studies (IHS) announced today that Britain’s decision to leave the EU is expected to cut economic growth in Austria by half a percent by 2020.

The IHS, an independent research institute, said that overall the Austrian economy is expected to grow yearly by 1.4% between 2016 and 2020, a figure in line with other EU economies.

This is an increase on the previous four years growth, where the economy had an annual growth of 1.1%. The IHS said that although the Euro block has seen significant economic recovery, Brexit has dampens growth prospects.

Some politicians in Austria have suggested that the country could benefit from Brexit by trying to attract industry that no longer wants to be based in the UK after it voted to leave the EU.

Following a meeting between the governor of industrial Lower Austria Erwin Pröll and the Czech transport minister, Pröll said Brexit could offer opportunities for both countries.

“With Brexit there is a chance that companies currently located in Great Britain soon open their centres in this region,” he told the Kurier.

In June, Austrian ministers showed they were willing to roll out the red carpet for companies based in Britain that are considering a move to the continent.

Finance Minister Hans Jörg Schelling told journalists then that he had already contacted the European Banking Authority, currently based in London, inviting them to relocate to Austria.

In a joint press conference with Foreign Minister Sebastian Kurz, both ministers said Austria could offer many companies a bridge to south-east Europe.

Over 30 international businesses are already established in Vienna, with Austria keen to attract more financial and manufacturing firms to the country.

Before the Brexit vote, Fiat Chrysler announced they would move their tractor production business from Basildon, England, to Austria if Great Britain were to leave the EU.