Vienna: The lingering energy crisis is expected to weigh on Austria’s economy in the medium term, causing the country’s gross domestic product (GDP) to grow by an annual average of only 1 per cent from 2023 to 2027, a new study revealed.
The study by the Austrian Institute of Economic Research (WIFO) released on Wednesday said that high energy prices will cause stagflation in the country in 2023, with a projected GDP growth of 0.2 per cent vis-a-vis an inflation rate of 6.5 per cent, reports Xinhua news agency.
“High energy prices reduce production opportunities and competitiveness, in particular for globally active energy-intensive companies,” the institute explained.
The institute expects energy prices in Austria to fall from 2024, albeit not to the low price levels in 2020 and 2021.
Statistics Austria said last month that the soaring energy prices had continued to drive up the country’s inflation rate, which reached 10.5 per cent in September, a 70-year high.
–IANS