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Geopolitical Tensions, Energy Crisis and Inflation Shape Economic Activity. The Austrian Economy in 2022

Author

Listed:
  • Josef Baumgartner
  • Jürgen Bierbaumer
  • Sandra Bilek-Steindl
  • Benjamin Bittschi

    (WIFO)

  • Christian Glocker

    (WIFO)

  • Christine Mayrhuber

    (WIFO)

  • Margit Schratzenstaller

Abstract

Geopolitical changes and the energy crisis shaped the development of the global economy in 2022. Regionally, economic activity was heterogeneous, with rising uncertainty and supply shortages resulting in high price increases in many countries. Austria's economy continued to expand strongly in the first half of the year, but high inflation dampened consumer and investment demand as the year progressed. Consumer price inflation rose to a peak of 11 percent in the autumn of 2022, leading to, among other things, real wage losses for employees. The Austrian federal government implemented extensive temporary and permanent relief measures to cushion the social and economic impact of inflation and the energy crisis on companies and private households.

Suggested Citation

  • Josef Baumgartner & Jürgen Bierbaumer & Sandra Bilek-Steindl & Benjamin Bittschi & Christian Glocker & Christine Mayrhuber & Margit Schratzenstaller, 2023. "Geopolitical Tensions, Energy Crisis and Inflation Shape Economic Activity. The Austrian Economy in 2022," WIFO Reports on Austria, WIFO, issue 7, May.
    • Handle: RePEc:wfo:repoau:y:2023:i:7
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    References listed on IDEAS

    as
    1. Mr. Nicolas Arregui & Oya Celasun & Ms. Dora M Iakova & Ms. Aiko Mineshima & Mr. Victor Mylonas & Mr. Frederik G Toscani & Yu Ching Wong & Mr. Li Zeng & Jing Zhou, 2022. "Targeted, Implementable, and Practical Energy Relief Measures for Households in Europe," IMF Working Papers 2022/262, International Monetary Fund.
    2. Thomas Url, 2023. "Hohe Inflation führt zu Kurswechsel in der Geldpolitik," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(4), pages 269-281, April.
    3. Josef Baumgartner & Marcus Scheiblecker & Thomas Url, 2022. "Maintaining Credibility is Currently the Top Priority," WIFO Studies, WIFO, number 70560.
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