According to the latest EU economic forecast, growth this year will remain well below the EU average. The EU Commission also fears a decline in the domestic economy. Compared to economic performance in 2019, Austria ranks third to last in terms of growth – only Germany and the Czech Republic are worse. By 2025 the prospects will get even worse.
At the same time, price-adjusted government spending in Austria is on average ten percent higher than in 2019. Spending in the European Union increased by an average of nine percent. “A lot of money was spent on dealing with the pandemic and the inflation crisis, but lasting success looks different,” criticized Agenda Austrian economist Hanno Lorenz.
The challenges for the economy are immense: high energy prices, rising unit labor costs and a weak global economy are weighing on the country. Lorenz demands that the direction of development should be determined at the latest by the 2024 election year. From better investment conditions to faster approval processes and higher incentives for employees, there are ample starting points. There is definitely a need for action.