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Stimulating Effects of Tax Cuts Dampened by Counter-Financing Measures. Economic Outlook for 2015 and 2016

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  • Stefan Schiman-Vukan

Abstract

At a projected rate of 0.5 percent for 2015, GDP growth in Austria remains subdued for the fourth consecutive year. With intra-EU trade picking up in 2016, domestic growth should accelerate to 1.3 percent. Exports will also be sustained by the significant depreciation of the euro. The tax reform 2015-16 will give support to private demand, while restraining public consumption. The moderate pace of growth over the projection period will not bring the rise in unemployment to a halt.

Suggested Citation

  • Stefan Schiman-Vukan, 2015. "Stimulating Effects of Tax Cuts Dampened by Counter-Financing Measures. Economic Outlook for 2015 and 2016," WIFO Bulletin, WIFO, vol. 20(13), pages 145-155, September.
    • Handle: RePEc:wfo:wblltn:y:2015:i:13:p:145-155
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    Cited by:

    1. Stefan Schiman-Vukan, 2015. "Confidence in the USA, Uncertainty in the Euro Area, Fragility in the Emerging Markets. Medium-term Forecast for the World Economy until 2020," WIFO Bulletin, WIFO, vol. 20(19), pages 214-221, November.
    2. Klaus Friesenbichler & Werner Hölzl & Kerstin Hölzl, 2015. "Cash Flow Rate Contracted. Earning Power of Austrian Manufacturers in 2014," WIFO Bulletin, WIFO, vol. 20(26), pages 292-302, December.

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