Austria: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Austria

May 13, 2024

Preview Citation

Format: Chicago

Austria: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Austria, (USA: International Monetary Fund, 2024) accessed November 21, 2024

Summary

Strong policy responses have helped to mitigate the impact of the recent shocks. Output recovered rapidly from the pandemic and, in response to the energy price shock, the authorities made use of available fiscal room to mitigate its impact while preserving price signals to encourage lower gas consumption and taking steps to secure access to additional gas supplies. Despite these efforts, the economy slipped into recession over the last few quarters, with high energy prices, elevated inflation, and higher interest rates weighing on output and demand. Inflation still persists above the euro-area average even as it has steadily declined since January 2023, in particular as services inflation has proved to be sticky amid high wage growth. Over the medium term, demographic headwinds pose significant fiscal and growth challenges.

Subject: 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 Details

Pages:

62
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2024/107
Stock No:

1AUTEA2024001
ISBN:

9798400276033
ISSN:

1934-7685

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