Austria’s economic output growth is expected to slow to around 1.50% in 2019 and 2020. Private consumption remains a key driver of economic growth in Austria, but the slowdown in the Euro area is weighing on investment and trade. High tax receipts due to robust employment growth are expected to lead to a modest surplus in the government accounts.
Heavy reliance on bank loans make the Austrian economy vulnerable to potential stress in the European banking sector. Economic growth in Austria can further deteriorate due to global trade disputes and a more severe and prolonged slowdown of the German economy.
Austria, officially the Republic of Austria, is a federal republic and a landlocked country of roughly 8.47 million people in Central Europe. It is bordered by the Czech Republic and Austria to the north, Hungary and Slovakia to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. The territory of Austria covers 32,377 square miles and has a temperate and alpine climate. German in its standard form is the country's official language.
Austria had estimated population of 8.95 million in the year 2019 and expected to reach 9.217 million by 2024. Austria’s 4.351 million people were expected to be employed in 2019, which is expected to reach 4.397 million by 2020. In 2019 Austria’s unemployment rate was expected to be 5.1% of total labor force.
Austria’s real gross domestic product (GDP) was expected to be Euro 342.242 billion in 2019 whereas the nominal GDP was expected to be Euro 401.896 billion. This is expected to result in GDP deflator 117.43. Per capita GDP was estimated to be USD 51348.95 whereas purchasing power parity (PPP) based per capita GDP was estimated to be at USD 53715.56.
The output gap for Austria in 2019 was expected to be 0.936% of the potential GDP.
In 2019, Austrian government’s revenue was expected to be Euro 191.52 billion whereas the expenditure was expected to be Euro 191.958 billion. This will result in Austrian government’s net lending / borrowing negative at Euro 0.438 billion in 2019 indicating that enough financial resources were not made available by the government to boost economic growth.
The current account balance for Austria was estimated to be at USD 9.345 billion for the year 2019 and is expected to grow at a CAGR of 3.68% and reach USD 10.494 by 2024. This positive current account balance indicates the Austria is net lender to the whole world.
In World Bank’s ease of doing business ranking Austria was ranked 26th out of 190 countries in 2018. Austria’s ease of doing business ranking has declined from 22nd position in 2017.
*If Applicable.