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
During 2015-2016 we expect subdued but stable growth. However, the drivers of this growth will change from previous years.
Weak external demand, particularly in the eurozone, will cause a reduction in net export contributions to growth compared to 2012-2013. Private consumption will remain stable with a significant increase not expected until 2016. Net exports will have a reduced yet positive contribution. This diminished export demand will cause a drag on investment and capital formation over the coming years.
It remains our view that the cabinet reshuffle and change in leadership of the Austrian People's Party (ÃVP) will not significantly alter the functioning of the 'grand coalition'. However, we expect to see continued gains from opposition parties over the course of 2015-2016 particularly the far-right FPÃ party given...
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...
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...
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. Our updated forecasts indicate a continuing moderate rebound in both pharmaceutical and healthcare expenditure in 2015 in local currency terms as opposed to weak numbers achieved in 2013 This is encouraging given the fact that the market will continue to be affected by the drug pricing restrictions and public spending cuts.
Headline Expenditure Projections
Pharmaceuticals: EUR4.71bn (USD6.31bn) in 2014 to EUR4.92bn (USD5.41bn) in 2015; +4.4% in local currency terms and -14.3% in US dollar terms.
Healthcare: EUR36.86bn (USD49.40bn) in 2014 to EUR38.21bn (USD42.03bn) in 2015; +3.7% in local currency...
BMI View : Non-hydropower renewable energy generation in Austria is expected to continue to grow at stable levels in 2015, with wind energy bearing the bulk of capacity growth. However, low electricity prices and a continuing oversupply are putting pressure on the industries.
We forecast non-hydropower renewables generation in Austria to grow by 6.15% in 2015. The bulk of the growth in electricity generation capacity through renewable energy systems continues to come from wind energy, while solar and biomass installations play only smaller roles. This is also represented through the lower attractiveness of governmental Feed-in-Tariffs (FiT) in photovoltaic (PV) installations compared to wind farms. Following a strong growth in wind power capacity in 2014, the sector is expected to have to deal with some economic headwinds in 2015 due to low electricity prices following...
BMI View : The entrance of a number of high profile MVNOs in H214 and 2015 could help to offset some of the net subscription losses recorded by the major operators during 2013-2014. The market has reached a saturation point, which points to significant opportunities for MVNOs to impact the market as consumers look for new deals or innovative strategies. 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.
Mobile subscriptions down 1.1% year-on-year (y-o-y) to 13.02mn in Q314.