Credit Amount Declines
About one third (36%) of Austrians are planning big ticket purchases over the next 12 months. A full 88% (+4) want to finance these purchases out of their own savings – 11% (0) intend to take out a loan or a building society loan. Despite the fact that interest rates on loans remain historically low. “Every borrower should hedge this uniquely low level of interest rates by means of a fixed interest rate agreement”, Bosek is convinced. In this way the size of loan installments remains foreseeable for many years. According to the survey, the planned borrowings amount to an average of about 68,300 euro, in the same time period last year the amount was still 79,800 euro (-14%).
The Euro Abides...
….that is at least what Austrians believe. Will the euro still exist in 2-3 years? This question was answered in the affirmative by an overwhelming majority of the ladies and gentlemen in the country. A full 84% are convinced of the common currency's continuation. Only 13% have doubts about its future, 3% have no opinion on the topic. A break-up scenario for the euro area isn't expected by Erste Bank's analysts either. The euro zone certainly continues to battle with growth prospects and the well known problems surrounding sovereign debt. However, these things need to be improved in any case – this is to say, regardless of the currency question. The euro offers member nations the most stable framework for this purpose – e.g. for the periphery with regard to foreign investment, which is important for economic growth, and for Germany with regard to export growth and the labor market.