Vienna - Economists further lowered their growth forecasts for Austria for this year and 2009 on Thursday, saying weakening growth in the Unites States, high oil prices and the strong dollar would affect the economic climate.

The independent institutes WIFO and IHS lowered their growth rate projections for 2009 to 0.9 per cent and 1.2 per cent, respectively, down from earlier estimates of 1.4 per cent and 1.9 per cent.

Both institutes set this year's growth projection at 2.0 per cent, a downward revision from WIFO's 2.3 per cent and the IHS projection of 2.2 per cent made in June.

In 2007, the Austrian economy had grown by 3.1 per cent.

Slowing economic growth in Austria and other economies of the euro group was less related to the financial crisis in the US than to weakening growth in that country, WIFO said in a statement.

Unfavourable exchange rates between the dollar and euro were also dampening Austria's export outlook, WIFO said, while high commodity prices were having a negative effect on spending power. The institute also predicted a rise in unemployment in Austria. (dpa)