Austrian Economic News and Analysis

Statistics Austria: Highest Public Deficit Since Records Began

Due to the Covid-19 pandemic, Austria has recorded its highest public deficit since the start of the record in 1954. The deficit in 2020 amounted to 8.9 percent of the GDP (EUR 33.2 billion), which was caused by a sharp increases in government spending and a decrease in government revenue.

April 1, 2021

Covid-19 in Austria: Lower Austria and Burgenland Extend Easter Lockdown

The "Easter rest" has now also been extended in the provinces Lower Austria and Burgenland until April 11. After Vienna, the two provinces have decided to prolong the lockdown until a week after Easter. The applicable rules for the eastern region of Austria include a 24 hour curfew, closure of the retail sector as well as closure of body-related services and cultural institutions.

April 1, 2021

Extension of Re-Employment Promise in Austria Gives Planning Security

In order to alleviate the hard-hit tourism industry, Austria's Labor Minister Martin Kocher and Tourism Minister Elisabeth Köstinger have announced to further extend the re-employment promise until the end of official closures. This gives the respective businesses more planning security, since they will not have to worry about their well-trained employees.

March 31, 2021

Austrian Airlines Continues Restructuring Process

Austrian Airlines has announced to further their restructuring process. The company will be cutting more than 650 jobs by 2023, while reducing the fleet once more. CEO Alexis von Hoensbroech: "The pandemic is taking much longer than expected. For this reason, we are now taking additional measures to secure the future of our Austrian Airlines in the long term."

March 26, 2021

Austrian Companies Join Largest European Technology Initiative

Austrian companies AT&S, Infineon Austria and NXP Semiconductors Austria are joining the IPCEI Microelectronics. The total investment volume of the Europe-wide project amount to no less than EUR 8.4 billion. Federal Ministers Gewessler and Schramböck are excited about the opportunity for Austria to make an impact in European digitalization.

March 25, 2021

Austrian Government Gives Starting Signal for "Horizon Europe"

The Austrian government has set its political, social and economic goals for the new EU’s research and innovation framework programme "Horizon Europe". Several ministers and experts have met in order to discuss Austrian expectations from the EU's new program, which will be running from 2021 until 2027.

March 25, 2021

Covid-19 in Austria: Regional Restrictions Are Expected

Although no concrete measures were announced at the press conference on Monday, March 22, the Austrian government gave hints as to where the situation in Austria might be going. Regional restrictions are expected for the provinces and districts with high 7-day incidences, especially for the provinces Vienna, Lower Austria and Burgenland.

March 23, 2021

Vienna Mayor Ludwig: "There is no Way Around Common European Path"

At the 9th annual dialogue of EU capitals with the European Commission, Vienna Mayor Ludwig and many other mayors from European cities emphasized the need for a consistent and common European path with regard to fighting the ongoing pandemic. Ludwig stands behind the "solidarity-based EU vaccination strategy."

March 23, 2021

Vienna Will Host Pathologist and Muscle Researcher Congresses

The City of Vienna has successfully brought two high-ranking medical congresses to Vienna. The 28th International Congress of the World Muscle Society will be in Vienna from September 23 to 29, 2024, and the European Society of Pathology will be meeting in Vienna from September 6 to 10, 2025.

March 22, 2021

Austria's Labor Minister Demands More Education and Training Opportunities

At an informal Employment and Social Affairs Council, Austria's Labor Minister Martin Kocher and his EU counterparts were discussing employment and social policies that address the recovery from the current crisis. Kocher emphasizes the need for education and training opportunities, which will proof to be useful for getting back to economic strength.

March 17, 2021

Austrian Foreign Trade: Covid-19 Pandemic Takes its Toll

Austria's imports and exports both declined heavily in 2020. A year characterized by the Covid-19 pandemic, the total value of imports decreased by around 9 percent compared to 2019, while Austrian companies exported 7.5 percent less than the year before. In total, imports and exports resulted in a trade balance deficit of around EUR 2 billion.

March 15, 2021

Vienna Still Attractive for International Companies

In 2020, Vienna has welcomed more than 200 new companies despite the difficulties resulting from the Covid-19 pandemic. Mayor Michael Ludwig interprets "the high level of interest" from foreign companies in Vienna as a result of Vienna being regarded as "stable and safe economic ground".

March 12, 2021

Vorarlberg Eases Lockdown on March 15

The model region Vorarlberg will start the easing of its lockdown on March 15. Opening steps as announced by the Austrian Health Minister and Vorarlberg's Governor include the sectors of restaurants, youth sports, events and self-help groups. The whole project will be accompanied scientifically.

March 10, 2021

International Women's Day 2021: Gender Pay Gap in Austria Still Significant

Since the International Women's Day is on March 8, Statistics Austria has revealed some data that show the still significant differences between women and men in Austria's workforce. On average, women earn around 14 percent less than men and only 3.8 percent of employed women hold managerial positions, compared to 8.1 percent of employed men.

March 5, 2021

EC Supports 7 Austrian Projects to Boost Economic Growth

The European Commission (EC) will support seven Austrian projects under the Technical Support Instrument (TSI). In total 226 projects in all of the 27 EU Member States were approved to receive funding, which will attempt to design and implement national reforms to boost economic growth in the respective countries.

March 5, 2021

Swiss President Visits Austria

The new Swiss President Guy Parmelin conducted his first trip abroad to meet with Austria's Federal President Alexander Van der Bellen and National Council President Wolfgang Sobotka in Vienna. The politicians discussed the Covid-19 situation in Europe, the Swiss relations with the EU and bilateral cooperation between Switzerland and Austria.

March 4, 2021

Austrian Minister for Economics Met German, Swiss and Liechtensteiner Counterpart

At the Quadrilateral Meeting between the Ministers of Economy from Austria, Germany, Switzerland and Liechtenstein, the topics comprised the impact of the Covid-19 pandemic on national and international economies, global trade policy and digitalization in Europe's single market system.

March 3, 2021

Covid-19 in Austria: Slight Easing of Regulations

The Austrian government has announced some new regulations with regard to the Covid-19 situation in Austria. The province of Vorarlberg will be facing relaxations of the current regulations as early as March 15, while the rest of the country will need to wait until the end of March and April for the opening of gastronomy and the cultural sector.

March 2, 2021

Austria Enters for the First Time as U.S. Exits Top Ten in Bloomberg's Innovation Index

Austria moves up one place to 10th place in the latest Bloomberg Innovation Index, while the U.S. dropped out of a top 10 that features a cluster of European countries. The Bloomberg index analyzes dozens of criteria using seven equally weighted metrics, including research and development spending, manufacturing capability and concentration of high-tech public companies.

March 2, 2021

Schramböck and Baldwin at International Research Conference

At the research conference hosted by the Research Center International Economics (FIW), Austria's Economics Minister Margarete Schramböck had the opportunity to take part in discussions with the star economist Richard Baldwin and a number of other important representatives of international economics research.

March 1, 2021

WIFO Director Badelt Sees Climate Issue as "Biggest Problem for Austrian Economy"

The Austrian Institute of Economic Research (WIFO) director Christoph Badelt emphasizes the need for public discussion of the current climate crisis and demands a "comprehensive transformation process" driven by Austria's Environment Minister Leonore Gewessler in order to battle the ongoing climate change.

February 26, 2021

WKO President Mahrer Demands Tourism Opening in March

At the so-called "opening summit" initiated by Austria's Federal Chamber of Commerce (WKO), the president of the WKO Harald Mahrer and other representatives of the affected businesses demand to open up the tourism and leisure industry. The currently successful model of entry tests for body-related services could be expanded to these industries as well, Mahrer emphasized.

February 26, 2021

Čaputovà and Van der Bellen Demand Sustainable Relaunch After Covid-19

The Slovak President Zuzana Čaputovà met Austria's Federal President Alexander Van der Bellen virtually in order to discuss the Covid-19 pandemic, Austrian aid to Slovakia and the climate crisis. Both head of states demand that the "relaunch of the economy in the EU must be sustainable" after the Covid-19 crisis.

February 19, 2021

New EU Trade Strategy: Schramböck Welcomes Proposal

Austria's Minister of Economics Margarete Schramböck welcomes the European Commission's document on a new EU trade strategy. The proposal incorporates various topics that will determine the EU's trade strategy for the next few years. Lessons learned from the Covid-19 crisis with regard to inner-European policy as well as international trade is accounted for in the proposition.

February 18, 2021

Austria's Economy Is Far Behind EU Average

According to the latest numbers issued by the EU's statistics office Eurostat, the gross domestic product of the EU fell by 0.6 percent in Q4 2020 compared to the third quarter of the same year. Austria, however, has performed the worst out of all EU member states and saw a GDP decline of 4.3 percent.

February 17, 2021

WKO: Austria Needs to End Lockdown in March

After the recent announcement of Austria's federal government to have restaurants, hotels and the cultural sector closed until Easter, the heads of the Austrian Federal Chamber of Commerce (WKO) demand opening steps for March. They emphasize that all the current tools, such as mass testing, entry tests and stricter distance rules, would allow a safe gradual opening of the currently closed sectors.

February 16, 2021

Covid-19 in Austria: Hotels And Restaurants Closed Until Easter

After easing the latest lockdown for the retail sector and schools in Austria on February 8, the opening of restaurants and the cultural and tourism sector was heavily discussed. However, Austria's government has announced that hotels, restaurants, cultural establishments and recreational facilities will remain closed until further notice.

February 15, 2021

Vienna - Salzburg: Frequent Intervals Will Be Maintained

The important rail connection between Vienna and Salzburg will keep having regular intervals due to an emergency award by the Austrian Ministry of Climate Protection. The ministry will continue to order trains from the Austrian Railways (ÖBB) and Westbahn in order to assure a frequent rail connection until April 7.

February 15, 2021

Austria's and EU's GDP Forecast Gives Hope

In the EU winter forecast for the level of economic output in the near future, Austria's and the whole Euro area's GDPs are said to grow by almost 4 percent in 2021 and 2022. Although the economies declined in the fourth quarter of 2020 and first quarter of 2021 due to the impact of the second wave, the economic outlook is still promising for the remainder of 2021 and 2022.

February 12, 2021

WKO: Austria's Tourism Industry Needs Every Possible Help

The chairman of the division responsible for tourism in the Austrian Federal Chamber of Commerce, Robert Seeber, demands all possible help for the hard-hit Austrian tourism industry. Seeber emphasizes the need for urgent measures, so the tourism sector can once again "act as an economic locomotive and employment engine to boost the entire national economy."

February 10, 2021

Finnish Speaker of Parliament Met Sobotka

Anu Vehviläinen, the Finnish Speaker of Parliament since June 2020, and Wolfgang Sobotka, Austria's National Council President, met for the first time and discussed current issues, such as the Covid-19 pandemic, security of parliaments, the IPU World Conference and the accession negotiations with the Western Balkans.

February 9, 2021

How the EU-Japan Economic Partnership Agreement Benefits Austria

The EU-Japan Economic Partnership Agreement (EPA) celebrates its second anniversary by adding 28 protected geographical indications, one of them important for Austria, and facilitating trade in wine and vehicles. The agreement does not only benefit the EU as a whole, but has also immediate impact on Austria's economy.

February 8, 2021

WKO Heads: Easing of Lockdown Was Necessary

Both, the Austrian Federal Chamber of Commerce's (WKO) President, Harald Mahrer, and Secretary General, Karlheinz Kopf, are pleased by the government's decision to open the retail sector and body-related service providers again. They furthermore demand a clear perspective for industries that are yet to be opened.

February 4, 2021

Vienna Hopes for Revival as Congress Metropolis

The Covid-19 pandemic has influenced numerous different industries. Conventions, congresses and large-scale corporate events have not been possible, although they were important drivers for Vienna's tourism and international standing as congress metropolis. For 2021 and the upcoming years, the city hopes to experience a revival of this particular industry.

February 3, 2021

Austria's National Budget: EUR 22.5 Billion Deficit

The Covid-19 crisis has severely impacted Austria's economy and national budget. The Ministry of Finance has issued its financial results for the year 2020, which shows a deficit of EUR 22.5 billion. Higher expenditures for measures in connection with Covid-19 and a decrease in public levies are the main reasons for the bad results.

February 3, 2021

Covid-19 in Austria: New Rules Apply From February 8

Austria's federal government has announced a slight relaxation of the current lockdown. Shops and schools will reopen under certain requirements, but penalties for disregarding measures and and entry into Austria will be tightened. The aim of the government is to contain the current virus mutations from the UK and South Africa.

February 2, 2021

Blümel: EU's Raise of State Aid is Necessary Step

The European Commission has extended its framework for state aid to support companies that are affected by Covid-19. In addition to the extension, the current thresholds have been raised, which was a highly necessary decision according to Austria's Finance Minister Gernot Blümel.

January 29, 2021

Construction Works for Vienna's New Metro Line Have Begun

The construction works for Vienna's public transport extension has begun. The U2xU5 project, which will result in a whole new metro, the U5, and an extension of the current U2 line is set to be completed by 2026 and 2028, respectively. Austria's Federal Ministers for Finance and Climate Protection as well as Vienna's City Councillor for Public Transport took part in the groundbreaking ceremony.

January 28, 2021

Austria Joins International Renewable Energy Agency

Since January 1, 2021, Austria is member of the International Renewable Energy Agency (IRENA). During the Agency's General Assembly, Austria's Climate Protection Minister demands a transformation of the world's energy system towards 100 percent renewables and is pleased that Austria will make a contribution to this change.

January 26, 2021

Investment Subsidy Program Gets Extended

The Austrian government has announced an extension of the investment period for which subsidies will be granted. The high demand for the subsidy shows that many companies are hoping for a quick recovery from the current pandemic, which secures important jobs and strengthens Austria as a business location.

January 25, 2021

EU Future Conference: Edtstadler Demands Action

At an an informal video conference of the EU's Ministers for European Affairs, Austria's responsible Minister, Karoline Edtstadler, once again demanded an early start of the EU Future Conference. Although the Covid-19 pandemic might have shown some strengths and weaknesses of the current EU, Edtstadler demands a clear path into the future of the Union.

January 25, 2021

New US Presidency: Austria and EU Welcome New Chapter

Joe Biden, as new President of the United States, and Kamala Harris, as new Vice President, were inaugurated on January 20, 2021. The reactions from politicians throughout the European Union and Austria to the inauguration and the President's first acts were filled with hope and positivity.

January 22, 2021

Brexit Agreement: Austria's Economy Significantly Better Off

The Austrian Institute of Economic Research (WIFO) has issued a study in which the effects of the post-Brexit trade agreement between the United Kingdom and the European Union was compared to a no-deal scenario. The results of the study show that the Austrian economy be happy with the negotiated agreement.

January 14, 2021

International Start-Ups Are Attracted by Vienna

The Vienna Business Agency has received more applications for the Vienna Startup Package in 2020 than ever before. Out of 321 applications, the Agency has selected 16 winners from nine different countries, which will be able to take advantage of a package that includes coaching sessions, consulting and networking opportunities.

January 13, 2021

WKO: Vaccination in Austrian Businesses Possible

Austria's companies could be used as part of the vaccination strategy. This is what many major companies and Austria's Federal Chamber of Commerce suggest. The readily available infrastructure could provide testing and vaccination facilities for up to 500,000 employees in the various industries.

January 12, 2021

Speaker of Swedish Parliament Met Sobotka

The Speaker of the Swedish Parliament Andreas Norlén met virtually with his Austrian counterpart, National Council President Wolfgang Sobotka. The main topics of the meeting comprised the fight against the Covid-19 pandemic, parliamentary security and foreign relation issues.

January 12, 2021

Eurochambres President Demands Repositioning of EU

After the post-Brexit trade deal between the EU and the United Kingdom has finally been set up, Eurochambres President Christoph Leitl demands repositioning of the European Union and does not only see negative impacts of the UK leaving the single market and the customs union.

January 11, 2021

WKO: Lockdown Extension a "Blow For Domestic Trade"

Once again the Austria's Federal Chamber of Commerce (WKO) does not entirely support the federal government in its decision to extend the lockdown and cancel the opportunity to escape the lockdown with a negative Covid-19 test. The WKO demands plans for the affected companies and aid for the suppliers indirectly affected by the crisis.

January 5, 2021

Austria's Unemployment Rate at 11 Percent

Crisis-related unemployment, especially due to the lack of a seasonal start in tourism, has a huge impact on the unemployment rate in Austria at the moment. More than 500,000 people are currently seeking for jobs, which is an increase of more than 63,000 compared to the previous. month.

January 5, 2021

Austrian Lockdown Continues Until January 24

The initially planned "free-testing" to escape the lockdown will not be possible. The opposition parties have resisted this intention by the government, which now means an extension of the current lockdown until January 24. Whether or not schools will return to their normal operations on January 18 has not been decided yet.

January 4, 2021