Austria: Subdued inflation

In 2010, Austria is expected to recover from its worst recession in decades thanks to the improved external environment and supportive policies. If these conditions continue to prevail, growth should accelerate to its potential in 2011. Nevertheless, unemployment is set to increase until end-2010 and inflation, while inching up, will remain subdued.

The deterioration in the fiscal position calls for committing soon to a credible medium-term consolidation strategy which should be implemented once the recovery is in train. Administrative reforms should be continued to facilitate consolidation efforts. Growth may prove stronger in the short term given the brisk improvement in the global economy. The risk of a financial crisis in Central and Eastern Europe has diminished, but rising non-performing loan ratios would put the Austrian banking sector under pressure, entailing a downside risk to fiscal projections.

©OECD Observer 2010

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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