Solid growth prospects for the Austrian economy
The Austrian economy is on a solid growth path. For the period 2019 to 2023, the Institute expects real GDP to grow by an average of 1.6 % per year, after 1.8 % in the past five years. Output in Austria should thus grow slightly more strongly than in the euro area (1.4 %). Private consumption remains a key pillar of growth, while the growth of investment and exports are projected to slow somewhat due to the restrained development of the global economy. The average inflation rate is likely to be 1 ¾ %. The labor market situation will probably not improve further, so that the unemployment rate according to the national definition will remain at a high level, with 7.2 % at the end of the forecast period. Public finances should develop positively. A status quo projection of public revenues and expenditures would result in a budget surplus that could be used to finance a tax reform. The Institute continues to point to the need for structural reforms in order to secure the long-term competitiveness of the Austrian economy.