2024-10-04 08:31:47
Karlheinz Kopf, Secretary General of the Austrian Chamber of Commerce (WKÖ), sees the autumn forecast published today by WIFO and IHS for the Austrian economy as an “alarm signal that obliges everyone to take urgent action”. The growth expectations for Austria are again revised downwards.
For this year, both institutes expect real GDP to decline by 0.6 percent, after forecasting stagnation in June. The recession is getting worse, especially in industry. Domestic trade also has to accept significant losses in value creation, as private consumption does not provide the hoped-for stimulus despite high wage increases. The weak economy, combined with the still high interest rates, is also having an impact on investments. And: The poor economic situation is increasingly making itself felt on the labor market. The only thing that is encouraging is that inflation is falling.
Kopf: “The upswing is being pushed further and further back”
“The economic situation is now even more tense than was feared in the summer, and the hoped-for upswing is being pushed further and further back. The structural problems are becoming more and more obvious. We have to pull out all the stops so that the location becomes competitive again and Austria finally gets on track for growth,” emphasizes the WKÖ General Secretary and refers to a package of measures that the Chamber of Commerce has long been calling for to improve the framework conditions for companies and promote investments .
Absolute priority should be given to all quickly effective relief measures, such as the urgently needed relief of the labor factor and more tax incentives to make full-time employment or longer working hours more attractive. At the same time, there is an urgent need to give a boost to investments, which, according to forecasts, are unlikely to provide growth impulses either this year or next. Kopf: “Tax investment incentives for private investments are needed more than ever.” WIFO recommends the introduction of a temporary investment bonus or a temporary increase in the investment allowance.
Kopf concludes: “The current economic forecast once again underlines: The next government must focus on competitiveness, location and growth. Otherwise we will not only be standing still, but will even fall further behind in international competition.” (PWK358/SR)
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