Austria has revised its 2024 budget deficit forecast upward to 3.3 percent of its GDP, attributing the change to slower-than-expected economic recovery and the financial impacts of natural disasters, especially recent floods. The adjustment reflects challenges in Austria’s efforts to manage economic strains while facing the fallout of environmental crises.

Austria’s Ministry of Finance also anticipates an increase in public debt, rising by 1.5 to 79.3 percent of GDP for 2024, compared to 77.8 percent in 2023. This increase will surpass the Maastricht Treaty’s deficit limit, which sets the allowable budget deficit at 3 percent of GDP.

In a press statement, Christoph Badelt, Chairman of Austria’s Fiscal Advisory Council, expressed concerns that the new projections are overly optimistic. He predicts the actual budget deficit may exceed 3.5 percent of GDP, pointing to continued economic uncertainty, compared to earlier forecasts of 2.9 percent in March 2024.

Source: Emirates News Agency