Austrian Economic News and Analysis
Read the latest headlines about Austria's economy, including news on inflation, growth domestic product (GDP), nation's debt and labor market
Edtstadler: "No Understanding" for EU Budget Veto of Poland and Hungary
Hungary and Poland refused to agree on the EU's financial framework for the next seven years. Austria's Minister Edtstadler as well as her German counterparts do not understand Hungary's and Poland's veto and demand a clear resolution of any blockades that delay the distribution of important Covid-19 aid measures.
November 24, 2020
WKO: Thoughts About Opening Stores on Sundays
The President of the Austrian Federal Chamber of Commerce (WKO) has expressed his thoughts about a possible opening of stores on Sundays before Christmas. This would create the opportunity for companies to equalize customer flows which they have missed out on during the ongoing lockdown.
November 24, 2020
First Austrian Swedish Innovation Exchange Day
The Austrian and Swedish government have decided to hold their first ever Austrian Swedish Innovation Exchange Day, which will try to kick-off a lasting bilateral relationship with regard to innovation, business and industry. The event will be attended by Austrian and Swedish politicians as well as representatives of the economic sector.
November 23, 2020
European Commission Approves Second Fixed Cost Subsidy
The European Commission has approved Austria's request to grant further subsidies to companies particularly impacted by the ongoing pandemic. The so-called Fixed Cost Subsidy II could cover up to 70 percent of the uncovered fixed costs and up to EUR 3 million.
November 23, 2020
October: Minus 84.5 Percent Overnight Stays in Vienna
The Covid-19 crisis has hit the hotel and tourism industry hard. Especially urban areas are affected which is also the reason for the drastic numbers of overnight stays in Vienna. Compared to 2019, the city recorded a minus of 84.5 percent in the month of October.
November 20, 2020
Austrian Government Plans Deficit of EUR 22.6 Billion
Due to the ongoing Covid-19 pandemic and the resulting economic crisis, the Austrian government has agreed on a budget that plans with a deficit of EUR 22.6 billion for next year. Estimated lower revenues due to the weak economy on the one side face higher expenditures because of the subsidies for various businesses on the other.
November 20, 2020
WKO Heads: "Lockdown Hits Companies With Full Force"
The new lockdown will once again shut down Austria's economy in its entirety. The heads of the Austria Federal Chamber of Commerce (WKO) emphasize the importance of financial support for companies by the government and of a well functioning education for children despite school closings.
November 16, 2020
Austria Faces Hard Lockdown
Due to rapidly rising Covid-19 infection rates in Austria, the government will most likely implement a hard lockdown starting at the beginning of next week. The new restrictions might include the closing of schools and kindergartens as well as shutting down all stores that are not providing goods to cover basic needs.
November 13, 2020
Austrian School Receives VET Innovators Award
The Higher College for Engineering Wolfsberg (HTL Wolfsberg) wins the prize as "entrepreneurial school" in the category VET Innovators Awards during the European Week of Vocational Training. The school has impressed with its sustainable business collaborations and its successes in innovation competitions.
November 13, 2020
Rail Traffic Between Vienna and Salzburg Can Be Maintained
Similar to measures taken in the spring of this year, the Ministry for Climate Protection has set up an emergency contract with the ÖBB and WESTbahn to safeguard rail transport between Vienna and Salzburg. The mutual acceptance of tickets from WESTbahn and ÖBB will also be established again.
November 13, 2020
Eurochambres President Demands Rapid Measures for Businesses
At the presentation of the 28th Eurochambres Economic Survey, President of the Association for European Chambers of Commerce Leitl demands "immediate help" for businesses affected by the Covid-19 pandemic. According to him, the survey results show sharp declines in many economic indicators.
November 11, 2020
Turnover Compensation For Impacted Companies
The Austrian Ministry of Finance has issued another instrument to offset negative consequences of the second lockdown for the economy. Impacted businesses will be compensated for 80 percent of their turnover with an allegedly unbureaucratic and fast process that should help companies as uncomplicated as possible.
November 6, 2020
Second Coronavirus Lockdown: Which Rules Apply for your Business in Austria?
The exponential increase of the Austrian COVID-19 infection numbers has made drastic measures necessary. On November 3, 2020, the new COVID-19 Protection Measures Ordinance will come into force and remain in force until at least November 30, 2020. In order to cushion the economic impact, short-time working will be upgraded and loss of sales compensated. The new rules and economic measures for the gastronomy, tour operator, tourism and leisure industry can be found below.
November 2, 2020 · Updated: November 6, 2020; 10:13
EU Budget: Austrian Commissioner Hahn Welcomes New Agreement
For the first time ever, the disbursement of funds from the next EU budget will be directly connected to the rule of law of each member state. This was negotiated by representatives of the European Parliament and the Council; among them is Austria's EU Budget Commissioner Johannes Hahn.
November 5, 2020
Opening of Vienna's Christmas Market is Postponed
Due to the new lockdown, the City of Vienna has postponed the opening of the Christmas market on the Rathausplatz in Vienna, the square in front of the Vienna City Hall. It is still unclear if the recent terror attacks on the Inner City will also affect the Christmas celebrations in Vienna.
November 3, 2020
Austrian Airlines Goes Into Hibernation
The worsening Covid-19 situation in Europe also affects Austrian Airlines and its success in the upcoming winter months. After a summer which was better than most forecasts had predicted, the current rise of Covid-19 cases means a reduction in demand for flights in the near future.
October 29, 2020
Van der Bellen at Viennale 2020: "We Need the Film"
The 58th Viennale is currently taking place despite Covid-19 and all the regulations that are in place. Federal President Van der Bellen and director of the festival, Eva Sangiorgi, both emphasize the importance of film even though the pandemic has impacted the industry dramatically.
October 23, 2020
Hahn: European Commission Is Entering Top League of Global Financial Markets
With the issuing of social bonds worth EUR 17 billion, the European Commission tries to safeguard jobs and prevent the economy from collapsing in its member countries. Commission President von der Leyen as well as Austrian EU Budget Commissioner Hahn are pleased by this important step.
October 22, 2020
Austrian National Bank: Exports Increase Again
Exports, excluding tourism, were above the comparable figures from 2019 for the first time in Austria since the outbreak of the Covid-19 crisis. The Austrian National Bank is confident that a second wave can be contained and that no further monetary or fiscal policy measures are needed.
October 21, 2020
World Statistics Day 2020: New Economic Monitor Shows Austria's Economic Development
Statistics Austria has introduced a new economic monitor which shows Austria's economic development over time. Data is updated biweekly and will include more than 80 economic indicators across different sectors and industries. In addition to this monitor, Statistics Austria provides a Covid-19 data collection which focuses also on population, health and education.
October 19, 2020
EU Council: Kurz Demands Better Coordination of Restrictions
At the EU Council of the heads of state and government, Chancellor Kurz demands better coordination of travel restrictions, quarantine periods and testing with regard to Covid-19. Other topics on the agenda were the Brexit negotiations, foreign relations, and climate protection.
October 16, 2020
European Ministers Sign EU Cloud Declaration
At the Informal Council of EU Minister for Telecommunication and Digitalization the future of the EU with regard to security, exchange and use of data was discussed. Austrian Minister Schramböck is delighted about the progress made and the signing of the EU Cloud Declaration that should enable an even better exchange of data among member states.
October 15, 2020
Winter in Vienna: New Year's Eve Trail Cancelled, Vienna Ice Dream Still On Track
The Covid-19 related cancellations of events were a common theme in the recent months. Now, Vienna's New Year's Eve Trail is the next victim of the pandemic. The popular event will not be held in 2020, while the organizers of the Vienna Ice Dream are still confident to see visitors gliding along the ice tracks.
October 14, 2020
Federal Chamber of Commerce: Lockdown Is Unthinkable and Needs To Be Avoided
The heads of the Federal Chamber of Commerce emphasize the importance of avoiding a second lockdown due to rising Covid-19 cases in Austria. They also demand further support measures for the economy and particularly hope that the EU approves the planned fixed cost subsidy.
October 9, 2020
Minister President of Bavaria Meets Kurz: "Borders Need To Stay Open"
Both, the Minister President of Bavaria Markus Söder as well as Austrian Chancellor Kurz, agreed on the fact that the borders between Germany and Austria need to stay open despite an increasing numbers of Covid-19 cases in both countries.
October 9, 2020
Vienna-based OPEC Launches Newest Edition of World Oil Outlook
The 2020 OPEC World Oil Outlook (WOO) has been launched in Vienna providing, among other topics, the OPEC Secretariat’s in-depth look at the unprecedented scale and impact of the Covid-19 pandemic on the global energy and oil markets.
October 8, 2020
Edtstadler Welcomes Progress in Accession Process of Western Balkan States
The European Commission has agreed on a financial package for economic integration of the Western Balkan states. The good developments in North Macedonia and Albania are not only welcomed by the European Union but also by Federal Minister Edtstadler.
October 8, 2020
Austrian Airlines to Reduce Flights and to Increase Short-Time Work
Due to new travel restrictions from Germany, Switzerland and other countries with regard to the increasing number of Covid-19 cases in Austria, Austrian Airlines will reduce the number of flights which were originally planned for the upcoming season to only 30% compared to last winter.
October 6, 2020
Schramböck: "Every New Infection Is a Potential Danger for the Business Location"
Federal Minister for Economic Affairs Schramböck empasizes the importance of low infection rates for the business location. She demands more rigid measures for Vienna, which is currently the Covid-19 hotspot in Austria.
October 5, 2020
European Council Decides on Sanctions Against Belarus
The European Council which was attended by the heads of the 27 member countries decided on sanctions against Belarus as well as a threat of sanctions against Turkey. Chancellor Kurz, Autria's representative at the Council, is satisfied with the two-day long discussions.
October 5, 2020
Approval for EU Membership Remains High Among Austrians
A recent survey conducted by the Austrian Society for European Politics shows that the Covid-19 pandemic had only little or no effect on the approval for EU membership among the Austrian population. 70 percent of a representative sample wants to remain in the European Union.
October 2, 2020
EU Special Summit Deals with Foreign Policy Issues
The EU government heads have come together to discuss foreign policy issues in Brussels. Chancellor Kurz is representing Austria at the meeting and has already met with Council President Michel, EU Foreign Affairs Commissioner Borrell and Commission President von der Leyen.
October 1, 2020
Public Deficit Amounts to 9.4%, Public Debt to 82.6% of GDP in First Half Year of 2020
Austria's government has lost its successful path to a lower public deficit due to Covid-19. In the first half year of 2020, the public deficit amounted to 9.4% while public debt rose to 82.6%. The outlook for the second half of 2020 is not much better and an increase of public debt is expected.
September 30, 2020
Tourism Conference: Clear Regulations and Low Infection Rates Are Prerequisites
Tourism in Austria will be possible with clear regulations and low infection rates, according to Tourism Minister Köstinger. The Federal Minister met with representatives of the federal states to discuss how and in which form winter tourism will be possible this year.
September 29, 2020
Austrian Economy Slumped by 12.1% in Q2 2020
The newly published report by Statistics Austria shows a massive economic slump in the second quarter of 2020. Austria's GDP declined by more than 12 percent compared to the second quarter of 2019 while expectations for the last two quarters of the year are not much better.
September 28, 2020
Increase of Budget for Investment Subsidies to EUR 2 Billion
The Austrian Government has announced a budget increase for investment subsidies. A high demand and investment volume in the first three weeks of the application period has lead to this decision that is welcomed by the Federal Chamber of Commerce.
September 23, 2020
European Commission Approves Further EUR 4 Billion for Austrian Companies
Further EUR 4 billion intended to help Austrian companies sustain the Covid-19 crisis were approved by the European Commission. Grants and guarantees of up to EUR 800,000 per company can be given out in cases of hardship and danger of bankruptcy.
September 22, 2020
Swiss President Welcomes Kurz
Swiss President Sommaruga and Austria's Chancellor Kurz met near Bern to discuss current topics related to the Covid-19 pandemic and the cooperation between the two countries. Kurz also met with CEOs of leading Swiss pharmaceutical companies to discuss the current vaccine developments.
September 21, 2020
Zelensky Visits Austria
Ukrainian President Zelensky came to Austria to visit President Van der Bellen, Chancellor Kurz and President of the National Council Sobotka. The topics comprised the successful bilateral economic relations and regional conflicts in the Ukraine.
September 16, 2020
Anniversary Exhibition "Vienna International Center"
The City of Vienna dedicates an entire exhibition in the Vienna City Hall to the over 40th anniversary of the Vienna International Center. The exhibition can be seen until October 30.
September 16, 2020
Foreign Ministers of Central Five Meet in Slovenia
The heads of diplomacy of Slovenia, Slovakia, the Czech Republic and Austria conducted a working meeting with the topics being the fight against a possible second wave of rising Covid-19 cases and other foreign affairs issues.
September 16, 2020
Sacher Hotels Lay Off 140 Employees
The dramatic situation in Austria's tourism industry does not even spare one of the most prestigious hotels in Europe. The Sacher Hotels, located in Vienna and Salzburg, have announced the dismissal of 140 employees.
September 15, 2020
Digital Days 2020 on the "Digital Capital of the People"
The Digital Days 2020 organized by the City of Vienna will be held as an online conference with the main theme being "Digital Capital of the People". It will take place from September 30 to October 1 and registration is free of charge.
September 14, 2020
Suspension of Restrictions Between Hungary and Austria
Hungary has lifted the 30-kilometer and 24-hour restrictions for commuters from Austria. This makes cross-border life and business significantly easier and allows the trading relationship between the two countries to flourish again.
September 14, 2020
2,300 Potential Job Losses in Steyr
The German truck and bus subsidiary MAN announced that 9,500 jobs are in danger due to reorganization of the company. 2,300 and therefore the total workforce of the production site in Steyr, Austria might be included in the cut.
September 11, 2020
Japan's Abe Thanked Kurz for Cooperation
In a telephone summit, Japan's Prime Minister Abe and Austria's Chancellor Kurz wished each other farewell since Abe will step down as Japan's leading politician due to health issues.
September 10, 2020
Slovak-3 Summit with Matovič, Babiš, and Kurz
The Slovak-3 Summit with the highest officials from Slovakia, the Czech Republic, and Austria took place in Vienna. The topics comprised cooperation in the fight against the pandemic and the overall relations between the three neighboring countries.
September 10, 2020
Eurogroup President Donohoe Met Blümel
New Eurogroup President Donohoe and Austrian Finance Minister Blümel met at a round table discussion on "Europe's Comeback". Topics were the strength of a common currency union and strategies on how to achieve the economic comeback.
September 9, 2020
EU Puts a Hold on Austria's Fixed Cost Subsidies
The European Commission has questioned Austria's newly introduced fixed cost subsidy to the surprise of many Austrian politicians and experts. Companies in the sectors tourism and export were predominantly planned to be subsidized.
September 9, 2020
Meeting Between Janša and Kurz
Slovenia's Prime Minister Janša and President Pahor welcomed Chancellor Kurz for a working visit. All three politicians highlighted the important bilateral economic and political relations.
September 8, 2020
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