Austria: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Austria
IMF Staff Country Reports, May 13, 2024
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- Austria: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Austria
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Bibliographic details
- Published: May 13, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400276033.002
Overview and recent developments
- Economic policy support, including the use of available fiscal space, helped the Austrian economy recover rapidly from the pandemic and cushion the adverse impact of the energy-price shock following Russia’s invasion of Ukraine.
- Nevertheless, higher energy prices and the increase in interest rates required to contain subsequent inflation have weighed on growth, with the economy contracting last year.
- Inflation peaked in early 2023 and is now declining, but it remains above the euro-area average, with services sector inflation being relatively high and sticky.
Near-term outlook and projections
- Growth is expected to return to positive territory in 2024, led by the recovery in real wages and private consumption.
- Inflation is expected to decline gradually during 2024–2025 as wage growth moderates and the drop in international energy prices passes through to retail prices.
- It will likely be some time before inflation returns to two percent, given its current elevated level and sticky services inflation.
Key risks
- Risks are broadly balanced but sizeable, and include:
- Uncertainties around external demand.
- Energy market developments.
- Inflation persistence.
- The depth and speed of real estate market corrections.
Subject focus and keywords (as listed)
- Subjects: Energy prices, Fiscal policy, Fiscal stance, Inflation, International organization, Monetary policy, Prices
- Keywords: article IV consultation discussion, Energy prices, Fiscal stance, gas consumption, gas storage capacities, Global, HICP inflation rate, Inflation, inflation effect
Publication metadata (excerpt)
- Date: May 13, 2024
- Pages: 62
- Volume: 2024
- Issue: 107
- Series: Country Report No. 2024/107
- DOI: https://doi.org/10.5089/9798400276033.002
- Stock No: 1AUTEA2024001
- ISBN: 9798400276033
- ISSN: 1934-7685
International Monetary Fund — Austria: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Austria (May 13, 2024).
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