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COVID-19: Austria is starting up its economic motor

13.05.2020

Austria’s domestic economy has been hit by the Coronavirus crisis as well but the country is set to regain its old export prowess, thanks to its economic resilience.

The global economic situation is weighing heavily on domestic budgets, economic activity, stock markets and manufacturing. The spread of the Coronavirus has of course imposed limits on commercial activity in Austria, too. International trading relationships have suffered and the country’s GDP growth has been hampered, although not as badly as in other economies.

As a result of the Coronavirus crisis, the EU Commission has thus drastically lowered projected growth for Austria and other EU states; according to these projected figures, Austria’s GDP is set to drop by 5.5% this year before bouncing back and expanding by 5% in 2021. A record drop of 7.7% is even anticipated for the Eurozone as a whole.

Austria’s more positive position is due not only to the many years of success enjoyed by its economy but also to the way it has overcome the Coronavirus pandemic by means of a drastic lockdown. As thoughts now turn to a step-by-step rebooting of the economy, the government is implementing aid measures for companies and employment – as firms need certainty in their planning and financing along with liquidity.

With an aid package in excess of EUR 40 billion, Austria leads the international field, with subsidies, deferment of payments, liabilities and guarantees, interim aid, tax breaks and furloughs just some of the elements to be emphasised. Economic measures are also set to boost future commercial growth. The overall plan is to establish conditions for companies that will enable them to make substantial profits under their own steam once more.

As an open market economy, Austria is involved in multivalent and differentiated foreign trade, and plays a pioneering international role as both a tourist destination and economic location. Its export companies boast the highest quality and supply their finished good and third-party products to more than 200 countries. With an export ratio of over 55% of GDP, foreign sales are the source of Austria’s prosperity and international trading relationships its lifeblood. This is why ADVANTAGE AUSTRIA is ready with advice and help for all stakeholders and business partners, even – and especially – in such challenging times.

Last modified
13.05.2020
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