The American rates are a significant burden for the domestic economy and also have a negative influence on the situation of the labor market. One expert calculates that a maximum of 10,000 jobs can be endangered.
Bank Austria Chestnut, Stefan Bruckbauer predicts that American rates should slow economic growth in Austria by 0.25 percentage points.
The new rates of 20 percent would also have a negative influence on the labor market. This can jeopardize up to 10,000 jobs – 2900 of them in Upper Austria and Styria.
In the previous year, the United States developed with an export plus from 10 percent to 16.2 billion euros to Germany, the second most important export market in Austria. The export of pharmaceutical products increased by 80 percent, but the export from the machine to the US also increased against the trend. The vehicle sector, on the other hand, registered losses of 17 percent.
Styria and higher Austria the most affected
About two -thirds of export are eliminated by 11.3 billion euros in Vienna, Styria and Upper Austria. Although Vienna is hardly influenced by the US government measures with the export of pharmaceutical products, which are currently still excluded from the rates, industrial locations in Styria and Upper Austria feel the rates of 20 percent, Bruckbauer noted.
These two federal states must expect a loss of 0.5 and 0.4 percent when it comes to economic output, economist Robert Schwarz of the Austria. Vienna, Carinthia and Burgenland go out lightly with an economic abandonment with a maximum of 0.1 percent.
The new American rates increase the commercial weight for the export of goods from 1.3 percent to around 16 percent, according to the Chief Economist. Austria’s products on the American market are more expensive with around 2.4 billion euros.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
