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 informed 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.
Austria Country Risk
We continue to forecast subdued but stable growth during 2015-2016. We now expect Austria to lag behind the overall eurozone in 2015 before returning to a similar pace of growth from 2016 onwards.
We maintain our view that lower inflation resulting from falling energy prices will bolster consumer spending though this positive effect will be mitigated by a slight rise in unemployment during 2015. We do not expect significant growth momentum to materialise during H115.
As external demand and investment pick up, we expect growth to accelerate in 2016 in line with the broader economic pickup in eurozone and Germany.
At a federal level, support for the Freedom Party (FPO) is continually on par with that of the SPO-OVP coalition. Given its strong performance in the Styria and Burgenland elections, we...
Austria Industry Coverage (6)
Austria Medical Devices
BMI Industry View : The Austrian medical device market is well established, with above average per capita spending at just under USD300. 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 USD2,236mn, equal to USD263 per capita. The market is projected to reach USD2,552mn by 2018, having grown at a US dollar CAGR of 2.7% (or 4.7% when measured in...
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 returned to growth once...
Pharmaceuticals & Healthcare
Austria Pharmaceuticals & Healthcare
BMI View: The Austrian pharmaceutical and healthcare sectors are well developed and stable, offering some of the most attractive opportunities in the region. Nevertheless, our pharmaceutical and healthcare expenditure growth expectations remain resiliently subdued over the next few years, which prompted us to make downward revisions and caused a decline in Risk/Reward Index.
Headline Expenditure Projections
Pharmaceuticals: EUR4.45bn (USD5.96bn) in 2014 to EUR4.42bn (USD4.86bn) in 2015; -0.6% in local currency terms and -18.4% in US dollar terms. Forecasts have been revised downwards from the previous quarter.
Healthcare: EUR35.93bn (USD48.15bn) in 2014 to EUR37.33bn (USD41.06bn) in 2015; +3.9% in local currency terms and -14.7% in US...
BMI View : As growth of Austria's non-hydropower energy generation is estimated to stand at a strong 8% in 2015, we expect this to slowly decrease to about 5%-6% in 2016. Despite this steady decline in growth rates, the country is on track to meet its 2020 targets long before the deadline and become one of the countries that may exceed its targets in the end. Growth is primarily driven by the strong wind sector and to a lesser degree by solar. While electricity prices and a contemporary general oversupply of electricity continue to exert pressure on the market, we expect solid growth in both sectors going into 2016.
With a 32.6% renewable share, Austria is closing in fast on its 2020 target of 34%. Indeed the country is...
BMI View :
The entrance of Tele2 and other MVNO's could help to offset some of the net subscription losses recorded by the major operators over the last two years. Austria is a saturated market, and as MVNO customers are effectively being drawn from MNOs' retail user bases, the next few months should reveal the first tangible evidence that the influx of low-cost offers is weighing on MNOs' bottom lines. For the three MNOs, focusing on 3G/4G will continue to be a priority, in order to combat the fall in ARPU as MVNOs grow. 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.