Our comprehensive assessment of Austria's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Austria, as well as the latest industry developments that could impact Austria's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Austria before your competitors.
Austria Country Risk
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...
Austria Industry Coverage (6)
Austria Medical Devices
Espicom Industry View : Â 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).
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.Â
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 levelsÂ 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...
Pharmaceuticals & Healthcare
Austria Pharmaceuticals & Healthcare
BMI View: Â BMI has upwardly revised its pharmaceutical and healthcare forecasts for Austria, reflecting the country's improving economic prospects and attractiveness of these sector s in particular. The United States Commerce department has listed Austria as one of the most attractive countries in which to market healthcare technologies, while one of its domestic pharmaceutical firms has announced success in developing a cure for Alzheimer's. We believe that this would spur inward investment in the Austrian healthcare...
BMI View : Â We are maintaining our forecasts for non-hydropower renewable energy generation in Austria, as our key assumptions remain relevant. The renewable energy sector is set to experience greater political risks over the near term as political parties that have a greater focus on fiscal austerity gained ground in the September 2013 elections. The wind energy sector could be subject to new regulations on zoning, which poses a risk to our long-term forecasts.
We have maintained our 2014 growth forecast for non-hydropower renewable energy generation in Austria, at 6.4%. We had revised up this forecast in Q214 on the arrival of new data. We are also maintaining our long-term outlook, forecasting generation of non-hydropower renewable energy to grow at an average of 4.8% a year between 2014 and 2023. We note that we had significantly changed...
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...