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Austria Economic Snapshot

Economic Survey of Austria (December 2021)

Austria is set to overcome the COVID-19 shock and its economic scars with the help of genuine sanitary, health and economic support policies. The country faces the opportunities and the challenges of two major structural transformations: transition to a net zero emission economy, and the generalisation of more advanced forms of digitalisation. New entries and exits in the business sector, more capital and labour re-allocations, and greater geographic mobility of labour invite new policy measures to boost social cohesion by improving the adaptation of skills to jobs, improving the social protection of free-lance workers, and accelerating the social, economic and educational integration of groups of migrant origin.  

Executive Summary

Presentation

Economic Forecast Summary (December 2021)

The new lockdown will temporarily weigh on activity, but GDP is projected to recover quickly, growing by 4.6% in 2022 and 2.5% in 2023. A significant rebound in global trade underpins investment growth. Private consumption is expanding as households lower their saving ratio. Supply bottlenecks and labour shortages are weighing on activity. The outlook remains highly uncertain and dependent on the evolution of the pandemic and the length of the new lockdown, especially in hospitality sectors. Inflation is projected to increase to around 3% in 2021 and 2022 but will moderate over 2023.

Reform Priorities (April 2021)

Going for Growth 2021 - Austria

COVID-19 risks reinforcing long-standing vulnerabilities in the labour market such as digital skill gaps, diverging career trajectories between men and women, an elevated rate of long-term unemployed and subpar integration of migrants. Addressing these issues is crucial for a more inclusive recovery, facing demographic change and the sustainability of social security systems.

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2021 Structural Reform Priorities

  • Education: Improve digital skills across all layers of education and boost access to digital infrastructure
  • Labour market: Facilitate full-time labour force participation of both parents throughout the country
  • Labour market: Reduce incentives to early exit from the labour force
  • Education: Make educational outcomes less dependent on socio-economic background
  • Competition and regulation: Streamline regulations in professional and business services to boost productivity growth

 

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