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

  • During 2015-2016 we expect subdued but stable growth. However, the drivers of this growth will change from previous years.

  • Weak external demand, particularly in the eurozone, will cause a reduction in net export contributions to growth compared to 2012-2013. Private consumption will remain stable with a significant increase not expected until 2016. Net exports will have a reduced yet positive contribution. This diminished export demand will cause a drag on investment and capital formation over the coming years.

  • It remains our view that the cabinet reshuffle and change in leadership of the Austrian People's Party (ÖVP) will not significantly alter the functioning of the 'grand coalition'. However, we expect to see continued gains from opposition parties over the course of 2015-2016 particularly the far-right FPÖ party given...

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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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BMI 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 View:   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...

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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 : The Austrian mobile market has reached its saturation point and BMI believes that subscription growth will plateau during our 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, and there is a looming threat of IP substitution that could see operator revenues for voice and SMS services cannibalised by applications such as Skype, WhatsApp and Viber. The wireline segment is in a stronger position, with demand for higher capacity services continuing to grow, alongside uptake of bundled services, offering operators lower churn and higher value growth opportunities.

Key Data

  • Mobile subscriptions down 1.1% year-on...

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