IMF Staff Country Reports

Austria: 2025 Article IV Consultation-Press Release; and Staff Report

July 3, 2025

Download PDF More Formats on IMF eLibrary Order a Print Copy
More formats on IMF eLibrary Order a Print Copy

Preview Citation

Format: Chicago

International Monetary Fund. European Dept. "Austria: 2025 Article IV Consultation-Press Release; and Staff Report", IMF Staff Country Reports 2025, 159 (2025), accessed August 15, 2025, https://doi.org/10.5089/9798229015639.002

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Summary

The Austrian economy faces a challenging environment following two successive years of recession. Adverse shocks from high energy prices and the rapid rise in interest rates to curtail subsequent inflation have dragged down domestic and external demand, as have heightened uncertainty and weak sentiment. The downturn in activity has been especially significant in manufacturing, construction, and some services. Despite weak demand, core inflation has been persistent due in part to rapid wage growth. And while strong policy responses helped to cushion the impact of recent shocks, the fiscal deficit and public debt have risen significantly from pre-pandemic levels. Over the medium term, weak productivity and demographic aging pose significant growth and fiscal headwinds. At the same time, Austria retains strong institutions that equip it to deal with these challenges.

Subject: Exchange rate arrangements, Financial institutions, Foreign exchange, Inflation, Labor, Labor markets, Loans, Prices

Keywords: Currency of Austria, Debt ratio, Exchange rate arrangements, FSAP mission, Global, Green transition goal, Inflation, Labor markets, Loans, Single market

Publication Details

You May Also Be Interested In...

Canada: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis

August 15, 2025

Sign Restrictions with a New-Keynesian Macro Model: Results From a “Quasi-Agnostic” Identification Procedure

August 15, 2025

Beyond Costs: The Dominant Role of Strategic Complementarities in Pricing

August 15, 2025

Housing Booms and Productivity Growth

August 15, 2025