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Public Debt: Austria´s Government Too Optimistic

Politics ♦ Published: February 15, 2013; 21:29 ♦ (Vindobona)

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The austerity targets of the Austrian government are not realistic. Above all, the official public debt level will increase significantly next year.

Public Debt: Austria´s Government Too Optimistic / Picture: © Vindobona.org

At the moment, the official public debt quota comes at 75.2% of GDP. Austria´s government expects that the quota will decrease in the coming years. In 2016, the figure is anticipated to reach 70% of GDP. However, the basic assumptions are too optimistic. In the next years, Austria´s GDP growth will not be big enough. As the recovery will take more time, the economic growth rate will…