---- ---- ----f ----f ----f ----f ----f ----f ----f ----f ----f ----f Private final consumption, EURbn ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- Private final consumption, of GDP --.- --.- --.- --.- --.- --.- --.- --.- --.- --.- --.- --.- Private final consumption, real growth y-o-y -.- -.- -.- -.- -.- -.- -.- -.- -.- -.- -.- -.- f = BMI forecast. Source: BMI, eurostat We expect private consumption to add -.-pp and -.-pp to GDP growth in both ---- and ----, respectively. ...Decomposing gross fixed capital formation into its two major components of construction and machinery/ equipment shows that both components have been exceptionally weak across ---- and ----, although construction has been the main drag on overall fixed investment expenditure. In both cases, the drag from fixed investment is a result of the expira- tion of one-off government stimulus spending, although this is particularly the case in construction, where the public sector is a significant force in structural engineering and residential construction. However, we expect things to turn around in ---- and ----, by when we forecast fixed investment to add -.-pp and -.-pp, respectively, to real GDP growth. ...However, as a contribution to GDP growth, we forecast net exports to add -.-pp on average to growth in ---- and ----, compared to -.-pp in ----.
...Austrian economic growth will accelerate in the years ahead on the back government policies aiming to boost household consumption and fixed investment. However, a lack of structural reform s mean that growth will stay relatively subdued. ...We forecast fixed investment to grow by -.- annually over the next five years, compared to -.- average growth between ---- and ----. Furthermore, Austria will be relatively better shielded from the UK s vote to leave the European Union (EU), compared to countries such as the Netherlands and Poland, which have much closer trading and investment links with the UK. Austria exported just EUR-.-bn of goods and services to the UK, or -.- of total exports in ----, while foreign direct investment (FDI) volumes remain subdued. However, the main risk will stem from lower demand from other EU member states due to the interconnectivity of European supply chains. ...However, the main risk will stem from lower demand from other EU member states due to the interconnectivity of European supply chains. Brexit will also heighten uncertainty levels, hurting the export sector s planning abilities.
...
