Global Economic Outlook – September 2022 Austria: Strong energy headwinds – and fiscal support Austrian recovery from Strong exposure to Russian Elevated inflation with low, but Covid supported by ongoing gas imports has led to an positive, growth in 2023 as key strong fiscal support and increase in energy prices forecast. Risks from a full stop private and corporate with risks to industry and in gas supply would trigger a transfers. consumption dynamics. recessionary environment. Austria’s fiscal response to Covid was strong: 15.2% of Table 10: KPMG forecasts for Austria GDP was spent as support measures in Austria, comparable 2021 2022 2023 to Germany (15.3%). This softened the downturn, especially cushioning losses in the services and tourism sector. GDP 4.8 3.9 0.3 Employment remained strong, with unemployment rate Inflation 2.8 8.5 5.8 expected to fall to 4.6% in 2022. Austria’s 2021 upswing was robust (4.8%), led by strong industrial dynamics, Unemployment rate 6.2 4.6 4.6 despite the strong concentration of winter tourism and Source: Eurostat, KPMG forecasts. hospitality sectors in Austrian GDP. Note: Average % change on previous calendar year except for unemployment rate, which is average annual rate. Inflation measure used is the HICP. Strong winter tourism dynamics contributed positively to 2022 GDP, with a particular boost to Q1. Nevertheless, tourism is still only at 64%, compared to 2019 levels. That said, Austria is currently exposed to simultaneous supply side shocks, exacerbated – if not entirely caused – by the war in Ukraine. © 2022 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 33