Austria
In-depth country-focused analysis on Austria's economic, political and operational risk environment, complemented by detailed sector insight

Austria is an investment hub for many of our clients. The country acts as a gateway to the single European market as a member of the EU. Its services industry accounts for two thirds of its GDP, and tourism is the country's fastest-growing sector. Austria's industrial sector is mostly made up of small and medium-sized enterprises, but is a major player on the world stage. We make sure our clients make sound business choices in Austria, using our unique Total Analysis model. We keep them abreast of the latest market moves and political developments as part of our 'top-down' and 'bottom-up' perspective. We give further in-depth analysis on six of Austria's most important industries. Combining interactive data and forecasting with our risk-assessed and results-proven analysis gives our clients a winning approach. We help you, as our client, identify the opportunities and risks – making doing business in Austria simple.

Country Risk

Austria Country Risk

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CORE VIEWS

  • The Austrian economy will remain in the doldrums in 2014 and 2015 as weak demand, both externally and internally suppresses private consumption and fixed investment levels. The ongoing tensions between Russia and the West will also deter firms from investing in fixed capital until the geopolitical landscape becomes clearer.

  • The more vocal opposition from the Austrian government to Russia's actions in eastern Ukraine will win support from other EU member states, but will likely hinder the chances of Gazprom's proposed South Stream natural gas pipeline, which is set to terminate in Austria, being constructed. This could lead to trouble for Austrian banks such as Raiffeisen International, which have a large presence in the Russian market, and could end up as the subject of retaliatory sanctions.

  • The change in leadership of the...

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Austria Industry Coverage (6)

Commercial Banking

Austria Commercial Banking

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Commercial Banking Sector Indicators 
Date Total assets Client loans Bond portfolio Other Liabilities and capital Capital Client deposits

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Medical Devices

Austria Medical Devices

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Espicom Industry View :   The Austrian medical device market is well established, with above average per capita spending at just under US$300. The market is projected to grow at a US dollar CAGR of 2.7% to 2018, which is below average for the region. In keeping with most developed markets, the main growth drivers in the Austrian market are the increasing health needs of the ageing population and the search for new technologies to improve patient outcomes and increase health service efficiency.

Headline Industry Forecasts

  • In 2013, the medical device market was estimated at US$2,236mn, equal to US$263 per capita. The market is projected to reach US$2,552mn by 2018, having grown at a US dollar CAGR of 2.7% (or 4.7% when measured in euros).

  • ...

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Metals

Austria Metals

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BMI's latest Austria Metals Report assesses the prospects for growth in the steel industry over the medium-term following a return to growth in output and a continuation in year-on-year (y-o-y) growth in consumption during the 2013 full-year. Within it, our forecasts for the industry run out to 2018. The report examines the risk and investment strategies of leading players in the industry. It also examines the impact of a decline in the eurozone, particularly the German market, on Austrian exports. 

The performance of Austria's steel industry returned to growth once more in 2013, after deteriorating by 0.6% in 2012. Indeed in 2013, crude output increased by 0.5% to 7.46mnt. BMI estimates that consumption levels continued their upward trend for the fourth year running in 2013, rising by 1.2% from 4.78mnt as at December 31 2012 to 4.84mnt a year later. Going forward, BMI...

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Pharmaceuticals & Healthcare

Austria Pharmaceuticals & Healthcare

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BMI View:   The Austrian pharmaceutical and healthcare sectors are well developed and stable, offering some of the most attractive opportunities in the region. While the market will continue to be affected by the drug pricing restrictions and public spending cuts to healthcare being enacted across the region, we hold to our forecasts for steady growth over the duration of our forecast period.

Headline Expenditure Projections

  • Pharmaceuticals: EUR4.58bn (USD6.05bn) in 2013 to EUR4.79bn (USD6.42bn) in 2014; +4.6% in local currency terms and +6.2% in US dollar terms.

  • Healthcare: EUR37.04bn (USD48.89bn) in 2013 to EUR38.36bn (USD51.41bn) in...

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Renewables

Austria Renewables

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BMI View :   We are maintaining our growth forecasts for non-hydropower renewable energy generation in Austria this quarter. Growth in both the short- and long-term will be driven primarily by wind energy, with solar and biomass energy playing lesser roles.

We are maintaining our 2015 growth forecast for non-hydropower renewable energy generation in Austria at 6.2% this quarter. Growth will be driven primarily by wind energy, with biomass and solar energy playing smaller roles in the sector. We are also maintaining our long-term outlook for the Austrian renewable energy sector, and are forecasting generation of non-hydropower renewable energy to grow at an average of 4.6% a year between 2015 and 2023. Key Trends And Regulatory Changes

  • In September 2012 the government terminated the feed-...

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Telecommunications

Austria Telecommunications

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BMI View : Austrian mobile market has reached its saturation point and BMI believes that the subscriber growth will plateau at the end of the forecast period thus any potential growth will come from cannibalising the market shares of existing operators. Expanding 3G and 4G services will offer new revenue streams, but increasing competition is likely to erode the average revenue per user.

Mobile subscriber base has decreased an average of 0.4% every quarter since Q113. The regulator allowed for T-mobile and Drei Austria, two of the largest operators, to use some of their existing spectrum for 3G and 4G services. This will decrease the costs of developing new networks. However, with only 10,220k 4G subscribers in the market in Q213, growth will need to pick up quickly. The entrance of MVNOs, combined with new mobile...

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