Financial Markets in 2019 Characterised by Continued Favourable Financing Conditions

The central banks returned to an expansive monetary policy in the course of 2019. The resulting favourable financing conditions prompted non-financial companies to make greater use of borrowing. At the same time, private households increased their deposits in the credit system and their holdings of listed shares. With earnings rising only slightly, the earnings situation in the banking sector deteriorated, mainly due to the strong increase in costs. The more expansive monetary policy also gave positive impulses to share prices worldwide and strengthened the dollar exchange rate. For Austria this resulted in a nominal and real effective devaluation.