Policy Note 9: Austria’s economy at a crossroads: good position – unfavorable outlook

The financial and economic crisis has revealed considerable differences in the economic performance of the eurozone member states and the European Union. A comparison of selected member states shows that the Austrian economy has performed extremely well within the EU member states in recent years. At the same time, however, the competitive position of the Austrian economy has deteriorated significantly in key areas. Austria's unfavorable performance in terms of unit labor costs, inflation, unemployment and public finances suggests a phase of weak economic and employment growth in the near and medium term. Due to the continuing major macroeconomic imbalances within the eurozone, it can also be assumed that the general economic conditions for the Austrian economy will remain difficult.