Energy crisis to dampen Austria’s economic growth for years: study

VIENNA, Nov. 16– The lingering energy crisis is expected to weigh on Austria’s economy in the medium term, causing the country’s gross domestic product to grow by an annual average of only 1 percent from 2023 to 2027, the Austrian Institute of Economic Research said on Wednesday. The institute expects energy prices in Austria to fall from 2024, albeit not to the…

VIENNA, Nov. 16 (Xinhua) — The lingering energy crisis is expected to weigh on Austria’s economy in the medium term, causing the country’s gross domestic product (GDP) to grow by an annual average of only 1 percent from 2023 to 2027, the Austrian Institute of Economic Research (WIFO) said on Wednesday.

According to a WIFO study, high energy prices will cause stagflation in the country in 2023, with a projected GDP growth of 0.2 percent vis-a-vis an inflation rate of 6.5 percent.

“High energy prices reduce production opportunities and competitiveness, in particular for globally active energy-intensive companies,” the institute explained.

The institute expects energy prices in Austria to fall from 2024, albeit not to the low price levels in 2020 and 2021.

Statistics Austria said last month that the soaring energy prices had continued to drive up the country’s inflation rate, which reached 10.5 percent in September, a 70-year high. Enditem