Wirtschaftsdienst is the recognised journal for current debates on German economic policy and will hold its annual conference in Vienna on 25 November 2022 in cooperation with WIFO and the Vienna University of Economics and Business. High-profile speakers will discuss the economic consequences of the war. Final panel will also be streamed online.

Year-on-year economic growth based on the weekly GDP indicator (WWWI) is estimated at +1.7 percent for the first half of November 2022 (calendar weeks 44 to 45, 31 October to 13 November; October +1.5 percent, September +2.9 percent; both revised).

For the years 2023 to 2027, economic growth is expected to be subdued (+1.0 percent p.a.) with weak employment dynamics (+0.8 percent p.a.). As the labour supply grows at a slightly lower rate than employment, the unemployment rate is predicted to fall from 6.7 percent in 2023 to 6.4 percent in 2027.

Economic activity is weakening worldwide as a result of high commodity and energy prices. In Austria, GDP stagnated in the third quarter of 2022. Exports and value added in manufacturing declined. Despite the slight easing on the energy markets, inflation remained high in October. The labour market, however, has not yet been affected by the economic slowdown.

According to the latest WIFO flash estimate, Austria's economic output stagnated in the third quarter of 2022 (–0.1 percent compared to the previous quarter). This was the first time that the negative sentiment recently expressed in business surveys, was also reflected in the economic data. The downturn in the international economy caused domestic exports to shrink quarter-on-quarter, resulting in a drop in domestic production of tangible goods. Compared to the same quarter of the previous year, GDP still increased by +1.8 percent in real terms.

A recent WIFO Research Brief uses micro data from Statistics Austria to show the use of knowledge capital in Austrian firms across industries. Based on these first empirical results, a critical discussion and valuable conclusions for economic policy can be derived.

According to a recent WIFO Research Brief by Michael Böheim, Ulrike Huemer, Claudia Kettner, Daniela Kletzan-Slamanig and Margit Schratzenstaller, support measures for companies to cushion high energy costs should be limited to those companies that cannot pass on their costs because they are in international competition.