Austria’s debt ratio will hit 80% this year, then drop – Business & Finance

VIENNA: Austria’s debt ratio will start falling from 2023 after hitting 80% of economic output this year, Finance Minister Magnus Brunner said on Saturday, as he prepares to announce the budget next year this month.

“Due to weaker economic growth and the necessary measures against inflation, we will have a debt ratio of around 80% this year.

In 2023, the debt ratio will already fall, and in the coming years the aim must be to return to around 70%,” he told the Austrian press agency.

“The path is therefore the right one, which is also important as a signal for the rating agencies, because we have already seen this year that the outlook for Austria is viewed more critically.

Eurozone inflation jumps to record 10%

It also increases the cost of our debt,” he added. Brunner is due to present the budget, which is still being finalized, to parliament on October 12, APA said.

“In the context of weaker economic development, high inflation and the challenges posed by the war in Ukraine, the 2023 budget will of course again be strongly characterized by crisis measures,” he said. .

He cited measures due to come into effect next year, such as subsidies for electricity costs, tax breaks linked to the cost of living and an increase in commuting allowances.

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John A. Bogar