The European Commission, newly constituted after the EU elections, has been launching its work for the period of 2014-2019. The bank stress test shows that 25 of the 130 European banks tested are in a problematic situation. One of the five Austrian banks tested does not meet the requirements....

Following a cyclical downturn in 2014, the Austrian economy is set to grow at a moderate pace of 1.3 percent p.a. over the period from 2015 to 2019. Private consumption and investment will experience a sluggish growth, while the external contribution to GDP growth will remain modest. The gradual...

After the stagnation prevailing since spring 2014, economic activity in Austria will remain subdued also in early 2015. Leading indicators have lately given no firm hopes for a cyclical rebound. From a short-term perspective, the conditions for a normal recovery of demand and output in Austria...

The marked decline of oil prices gives some impetus to business activity in the euro area. However, medium-term prospects are dominated by lack of aggregate demand and very low inflation; moreover, the lacking possibility of currency de- or re-valuation, notably the under-valuation for Germany,...

Surprisingly manufacturers expect to boost their investments substantially in 2015. Considering the weak recovery and an economic situation that has hardly improved at all it is unlikely that their expectations will come true. In 2014, manufacturers raised their investments by 10 percent,...

After the double-dip recession starting in 2008, the European construction sector returned to growth in 2014. With an average rate of +1.0 percent across all 19 Euroconstruct member countries, the recovery is not very strong but can be found in almost all countries. Despite the sluggish economic...

Global economic developments have been uneven, but activity has recently been robust notably in large economies such as the USA and the UK. In the euro area, by contrast, momentum has been muted. The Austrian economy stagnated in the second half of 2014. Given the somewhat more positive economic...

A key objective of a reform of the Austrian tax system should be the improvement of the tax structure. This includes a shift in the revenue composition away from certain tax bases towards other bases, implying their higher taxation. The latter should not only compensate revenue losses from...

The tax burden in Austria is comparatively high, and the gap vis-à-vis the EU average has widened. The tax structure exhibits a number of specific features: taxes on labour are high, both from the employee's and the employer's side, following an upward trend and markedly exceeding the...

The WIFO Business Cycle Survey serves as an important early-indication tool for the economic situation in Austria. Using a Markov regime-switching model, it is possible to determine at an early point in time whether the business cycle is in its upward or downward mode. Regime probabilities are...