Austria threatens the recession: warns the FPÖ of government expenditure?
Austria threatens the recession: warns the FPÖ of government expenditure?
Österreich, Land - On May 19, 2025, the Austrian economy is in a worrying state. According to reports from ots.at In 2023 be in a recession. This development is already priced in the current business forecasts that are worse than the previous autumn forecast from November 2024. In particular, inflation, which increased to 3.1 percent in April, paired with high living and electricity prices, contributes to this negative economic situation.
dr. Barbara Kolm, the business spokeswoman for the FPÖ, expressed significant concerns about the government's negotiating position in the EU deficit procedure. It criticizes the increase in government spending by the double budget and warns of inadequate tax revenue of the SPÖ finance minister. Dr. Kolm calls for a strict correction of the planned tax revenue and government expenditure. In addition, it emphasizes the need for structural reforms and expenditure reductions in order to endanger economic stability.
economic forecasts and developments
The current economic situation is illustrated by the forecasts of the WIFO and IHS, which expect a decline in economic output from 0.2 to 0.3 percent in 2023. Despite these challenges, there is also hopes for a slight recovery in 2024, where growth of 1.1 to 1.2 percent is forecast. However, uncertainty about medium -term development remains; Another year with a decline could be possible in 2026, as from The press is reported.
In addition, the Austrian National Bank (OENB) has adjusted its forecasts for 2023 and set a minus of 0.1 percent for gross domestic product. This leads to falling tax revenue and increasing needs at the state level. The problems are reinforced by the fact that the unemployment rate increases from 7 percent in the previous year to 7.5 percent. From 2026, however, a slight reduction will be forecast to 7.3 percent.
statutory and economic measures
In view of these challenges, extensive austerity measures are expected. This includes the abolition of the climate monus with savings of 2 billion euros and various funding cuts of 900 million euros. The training costs are also reduced. These savings are necessary to cope with the forecast budget deficit of 3.3 percent for 2023, which could increase to 3.5 percent for 2024
The Austrian economy is on the crossroads, with the need to implement effective reforms and economic incentives. The planned measures to reduce corporate tax and the demands for reducing bureaucracy are just a few of the proposed paths to initiate a positive turn. According to the OENB report, a recovery of private consumption, accompanied by rising real wing, could begin in the coming years to counteract the creeping recession.
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| Ort | Österreich, Land |
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