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OECD Economic Survey of Austria 2021 – Presentation

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2021 OECD ECONOMIC SURVEY OF AUSTRIA PREPARING FOR NEW OPPORTUNTIES AND CHALLENGES 20 December 2021

https://www.oecd.org/economy/austria-economic-snapshot/


Austria had a high level of labour productivity before the pandemic Real GDP per hours worked, constant USD PPP, 2019 100 80 60 40

Source: OECD Productivity Statistics (database).

NOR

DNK

CHE

BEL

USA

SWE

AUT

NLD

FRA

DEU

FIN

GBR

AUS

OECD

ITA

CAN

ESP

JPN

POL

PRT

0

GRC

20

2


The fall in economic activity was extensive Real GDP, index 2019Q4 = 100 110 Austria

105

Denmark

Germany

Switzerland

OECD

100 95 90

Source: OECD Economic Outlook: Statistics and Projections (database).

2021Q3

2021Q2

2021Q1

2020Q4

2020Q3

2020Q2

2020Q1

2019Q4

2019Q3

2019Q2

80

2019Q1

85

3


Fiscal support was significant % of GDP 30 Additional spending or foregone revenues

Equity, loans and guarantees

25 20 15 10 5 0

Austria

Switzerland

Denmark

Germany

Source: IMF Database of Fiscal Policy Responses to COVID-19, October, 2021.

Advanced economies¹ 4


The national vaccination campaign had to cope with scepticism in certain parts of the population 90

A. National vaccinations Share of the people fully vaccinated

%

AUT

DNK

DEU

% of the surveyed individuals 90

CHE

75

75

60

60

45

45

30

30

15

15

0

15Jan

15Feb

15Mar

15Apr

15May

15Jun

15Jul

15Aug

15Sep

15Oct

15Nov

0

AUT

Already vaccinated or as soon as possible

B. Population attitudes on vaccination DNK

Never

Willingness to get vaccinated

SWE

DEU

Trust for health authorities

EU

Trust for health professionals

Reliable information on vaccines

Note: The latest data point is for 30 November. Source: ourworldindata.org and European Commission (2021), Flash Eurobarometer 494: "Attitudes on vaccination against Covid-19", May.

5


The recovery is gaining strength Annual percentage change unless noted otherwise 2020

2021

2022

2023

-6.8

3.7

4.9

2.5

Unemployment rate (%)

5.4

5.1

4.7

4.5

Inflation (HCPI)

1.4

2.7

3.2

2.4

Gross product

domestic

Source: December 2021 OECD Economic Outlook.

6


Ensuring long-run fiscal sustainability

7


Public debt is higher than in peer countries and rose further with the crisis Public debt (Maastricht definition), % of GDP The shaded area shows projections

Source: OECD Economic Outlook 110 database.

8


The population is ageing Population share of those aged 65 and over

Shaded areas show the 25th and 75th percentile range of available data for OECD countries 40

Austria

OECD median

32 24 16 8 0

2000

2010

2020

2030

2040

2050

Source: OECD calculations based on OECD Economics Department Long-term Model and United Nations (2019), World Population Prospects: The 2019 Revision, Online Edition.

2060 9


Boosting labour supply

10


Employment gaps are sizeable for disadvantaged groups Employment gaps to prime-age men, 2016 or nearest A. Non-natives

% 30 25

B. Older workers (aged 55-64 years)

% 50 40

20

30

15 20

10

10

5 0

Top 3

CHE (7) DNK (20) OECD DEU (21) AUT (23) SWE (26)

0

Top 3

SWE (3) DNK (6) CHE (7) DEU (9)

Note: Number in parenthesis indicates the rank from best performing. Source: The OECD Jobs Strategy.

OECD AUT (28)

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The childcare infrastructure should be strengthened 36

Average weekly hours in early childcare and education 0-2 year-olds, 2019 or latest year

%

30 24 18 12 6 0

NLD

AUT

OECD

Source: Eurostat (2021), Labour Force Survey Statistics.

SWE

DEU

ITA

DNK 12


Moving to a greener economy

13


The share of renewables in energy production is high and stable Renewable energy share, % of energy supply

%

50 Austria

Denmark

OECD

40 30 20 10 0

2000

2002

2004

2006

2008

Source: OECD Green Growth Indicators (database).

2010

2012

2014

2016

2018 14


Further efforts are needed to reduce greenhouse gas emissions 20 16

Per capita metric tons of CO2 equivalent Austria: GHG emission

Denmark: GHG emission

Germany: GHG emission

Switzerland: GHG emission

12 8 4 0

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Source: OECD calculations based on IMF Climate Database, and United Nations (2019). World Population Prospects 2019.

15


Key messages Adjust support measures as sanitary situation evolves Increase vaccination rates to get beyond the pandemic Prepare plans to ensure long-run fiscal sustainability Boost labour supply Move to carbonless growth 16


There is room for progress in digitalisation Digital economy and society index, scale from 0 to 100, 2021

Index 100

Connectivity

Human Capital

Integration of Digital Technology

Digital Public Services

80 60 40

Source: European Commission (2021), Digital Economy and Society Index.

GRC

POL

HUN

SVK

ITA

CZE

LVA

PRT

FRA

LTU

SVN

BEL

DEU

AUT

ESP

LUX

EST

IRL

NLD

SWE

FIN

0

DNK

20

17


For more information

https://www.oecd.org/economy/austria-economic-snapshot/ OECD OECD Economics

Disclaimer: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

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