- April 1, 2015: Vol. 9, Number 4

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An inherent pragmatism: Austria is healthy but is not fully fit

by Kateryna Arriaga Frias

Is Austria still one of the wealthiest countries in the world or is it afflicted by a lingering weakness disease? As a small economy, Austria was affected by the world economic downturn in 2008–2009 and the subsequent recession in the euro zone, but the picture is now changing toward recovery. According to bulwiengesa, Austria should should see modest economic growth of 0.9 percent in 2015, with a likely acceleration to 1.7 percent in 2016.

In terms of the labour market, Austria’s policy has for many years maintained an unemployment rate that is among the lowest in the European Union. However, given the modest growth prospects for 2015 and a rise in the size of the labour force in the country, unemployment may increase to 5.1 percent. Nevertheless, starting from 2016 a tightening demand for labour is expected, mostly due to accelerating economic growth.

The slow recovery in the Austrian economy can be explained by weak demand for the country’s exports. One reason

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