Austrian 2006 GDP seen up 3.1 pct vs previous forecast up 3.05

The Austrian economy is expected to grow by 3.1 pct in 2006, 0.5 pct more than the previous forecast, according to the Austrian Institute for Economic Research (Wifo) and the Institute for Higher Education (IHS). Wifo, which calculates the figures for the Finance ministry, has predicted growth of 2.5 pct in 2007. The IHS has forecast 2.3 pct growth for next year. According to Wifo, business investment is driving Austrian growth, which was dragged down by the country's trade figures until the start of this year. Austrian growth is outpacing the euro zone, which is expected to be 2.5 pct for this year, according to the European Commission's most recent figures.