Stagflation – a combination of a slowing economy with rising inflation – presents a real danger to Austria in 2023, according to two reports from two economic think tanks.
The Institute for Advanced Studies (IHS) and the Austrian Institute for Economic Research (WIFO) forecast, in two separate reports, economic growth ranging between 0.2 and 0.3% next year, and growth forecasts ranging between 4.7 and 4.8 percent for 2022.
But both also forecast inflation rates of about 6.6%, which could push Austria into stagflation for the first time since the 1970s.
The Austrian Institute for Economic Research said it expected Austrian demand for imported goods and services to grow by 6%. In 2022, at a rate of 0.9? In 2023, the Institute for Advanced Studies estimated the figures at 6.9 and 1.6 percent.