Economic Outlook for Austria: The Kremlin's Aggression against Ukraine is a Game Changer

EnergyOil & Gas ♦ Published: April 4, 2022; 14:19 ♦ (Vindobona)

After a few tough years in which the Covid-19 virus shaped the Austrian economy, a new enormously important factor is coming into play - the war in Ukraine. The Russian aggression led to more pessimistic economic outlook and will still play an enormous factor in the Austrian market in the future.

The OeNB had to revise its economic forecasts due to the war in Ukraine. / Picture: © Wikimedia Commons / Gugerell / CC0

The COVID 19 pandemic continued to dominate social and economic events in Austria in the past year 2021. The otherwise constant economic upswing was slowed down despite the availability of vaccines and ongoing expansive government and monetary policy measures.

In 2021, the Austrian economy grew strongly at 4.5%, and the initial forecasts for 2022 were under positive signs. However, this expectation had to be revised due to the invasion of Ukraine by the Russian Federation on February 24, 2022. …