VIENNA Dec 12 Austria's central bank has kept
its economic growth forecasts for this year and next unchanged,
predicting a modest recovery for both years, it said in an
economic forecast published on Monday.
Household consumption and company investments are expected
to continue to drive growth, helped by a tax reform this year
that was aimed at reducing most households' tax burden.
Gross domestic product (GDP) would rise 1.4 percent this
year and 1.5 percent next year, the Austrian National Bank said
in its half-yearly economic forecast.
It revised the 2016 forecast downwards in September from a
previous 1.6 percent when consumption was found to be weaker
"The Austrian economy is currently in a recovery phase
driven by domestic demand," the central bank said in a
statement, adding that GDP growth has been below 1 percent for
the past four years.
It also kept its inflation outlook for the next two years
unchanged since a forecast in October. The harmonised index of
consumer prices will rise 0.9 percent this year and 1.5 percent
next year, it said.
(Reporting by Francois Murphy; Editing by Kirsti Knolle)