The war in Ukraine and its economic consequences hit an Austrian economy that was just starting up again after the pandemic. “This will put a damper on economic development, but our economists are not expecting a recession,” says Dieter Hengl, who has been a member of the Management Board of UniCredit Bank Austria since mid-March.
Instead of 4.5 percent growth, the bank’s economists now expect around three percent. Provided that Russia continues to supply natural gas to Austria. If this were not the case, the situation would be different.
In Upper Austria in particular there are industrial companies that are heavily dependent on Russian gas, according to Christian Wiesbauer, the state director responsible for corporate customer business. The industry is currently very stable. Many companies are financially strong and can handle the current situation well.
Credit demand still high
Demand for credit is still high. This also applies to investment loans. In industry, however, there are complaints that supply chain problems are getting worse and energy prices are also a burden. As a bank, you can accommodate companies with hedging transactions (forwards), for example for the price of gas. This means that you can hedge the current gas price for one to two years if you assume that the price could continue to rise. “We’ve already done a few deals in Upper Austria,” says Provincial Director Wiesbauer.
Hengl says that demand for consumption is still good due to the catch-up effect after the pandemic. However, high inflation will have a negative impact on disposable income.
With all the problems that companies are currently struggling with, Hengl also refers to the topic of sustainability and climate protection. “It won’t go away,” said the Bank Austria board. The institute offers an ESG fitness check. According to Hengl, the company will check where it currently stands in terms of sustainability and which way it has to go in the future. (hn)
Source: Nachrichten
