Austria’s economy is expected to expand 1.3 percent next year, slower than the 1.4 percent previously predicted, the state-supported Wifo research institute said today.

The institute increased its forecast for gross-domestic- product growth to 0.6 percent for this year, compared to 0.4 percent previously, according to a statement from Wifo today.

“Economic policy in the euro area is facing great challenges,” Wifo said in the statement. “Against this background, it seems extremely difficult to predict the international and domestic economic development,” it said, adding that its forecast “is subject to very confident conditions for solving the problems.”

To contact the reporter on this story: Zoe Schneeweiss in Vienna at zschneeweiss@bloomberg.net

To contact the editor responsible for this story: Boris Groendahl at bgroendahl@bloomberg.net