Sept. 30 (Bloomberg) -- Austria’s 2012 economic slowdown will be more abrupt than forecast and the Alpine republic’s production of goods and services may shrink in a quarter next year, a government-sponsored research group said today.
Austria’s 2012 gross domestic product, the value of all goods and services, is expected to rise 0.8 percent, the Wifo research institute said today in an e-mailed statement. It had forecast the economy would expand by 1.8 percent in July. Wifo initially saw 2 percent growth in April.
“The domestic economy at the turn of the year, in unison with other EU countries, will stagnate,” Wifo said in the statement. “A short-term decline in real GDP in a quarter cannot be excluded.”
Wifo lowered anticipated 2011 growth to 2.9 percent from 3 percent. The forecasts didn’t consider the impact of a possible Greek debt default on Austria’s economy, the report said.
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