The interest on money borrowed from the ECB will continue to rise in the coming year – and with it the interest on loans. According to the forecast, Austria will achieve a mini-growth of 0.3 percent and many countries are in danger of a recession.
“We believe the peak of inflation is near,” said EU Commissioner Paolo Gentiloni, presenting the latest economic forecast. Most recently, it rose to 11 percent for us. The EU expects an annual average of 8.7 percent for Austria, and this should fall to 6.7 percent by 2023.
OeNB Governor Robert Holzmann confirmed that interest rates in the euro area will therefore continue to rise. How much the ECB will raise in January also depends on how it assesses wage developments and how price increases are passed on to consumers. Due to the lack of data it is not yet possible to assess this.
High energy prices, loss of purchasing power among private households and generally high uncertainty pushed most eurozone countries into recession in the fourth quarter, Gentiloni said. That could extend to 2023.
Like Wifo, the EU expects a modest growth of 0.3 percent for Austria. The red lantern in the eurozone is carrying Germany, where the economy could shrink by 0.6 percent by 2023. Ireland is the best, where a plus of 3.2 percent is expected.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
