A gradual recovery is underway. For the first time since 2011, growth is projected to exceed 1% in 2016 and to strengthen further in 2017. The recent tax reform will boost private consumption. Investment growth has turned positive and is expected to strengthen further on the back of historically low interest rates and low oil prices.
Completing orderly wind-downs of failed banks is important to revive confidence, reduce the financial links between banks and the public sector, and strengthen the banking sector. Remaining subsidies to early retirement should be eliminated to raise employment of the elderly, especially women, closer to the OECD average. Rapid integration of migrants in the labour market would entail benefits for social cohesion, growth and Austria's fiscal position.
Labour productivity growth has varied considerably across sectors in Austria over the past five years, remaining buoyant in manufacturing but declining in services and construction. Reform backlogs in services hinder competition and reduce other sectors’ prospects of benefiting from cost-efficient intermediate inputs and the diffusion of new technologies.
>> Productivity country profile for Austria
Economic Survey of Austria (survey page)
The Economic Consequences of Brexit: A Taxing Decision (main web page with paper)
Structural reforms in a difficult time (blog + paper)
Public spending efficiency in the OECD (blog + paper)