Austria Accounted For GDP Of Government Debt In The First Quarter Of 2020, Rising To 72.8% Due To The New Crown Pneumonia Epidemic.

According to Austrian Salzburg daily quotes from the Austrian Statistical Bureau, EU countries have resorted to rescue measures to cope with the impact of the new crown pneumonia outbreak, which has greatly increased their financial expenditure and brought government debt to a new high. The Austria government's debt to GDP ratio rose for the first time in the 12 quarter, reaching 289 billion 100 million euros in the first quarter of this year (end of March), an increase of 8 billion 700 million euros compared with the end of 2019, representing a rise of GDP from 70.4% to 72.8%, and in the middle of the EU countries. The highest record of Austrian government debt in recent years was 296 billion 260 million euros in 2016, which accounted for 82.9% of GDP at that time.

Tobias Thomas, Secretary General of the Austrian Statistical Office, pointed out that the new crown pneumonia epidemic forced Austria to continue fiscal discipline. The figures mentioned above include only the first batch of debts due to the increase in the incidence of disease, and have not yet reflected the actual situation. It is expected that in the next few quarters, the outbreak of the new crown pneumonia will have a more significant impact on the debt level of the Austrian government. In May this year, the EU executive committee estimated that the GDP ratio of Austrian government debt in 2020 was 78.8%, which was lower than that of the European Union (95.1%) and the euro area (102.7%). However, the Austria Institute of Economic Research (Wifo) estimated that the GDP of the Austrian government would be 85%-90%.

The Executive Committee estimated that the GDP ratio of the Austrian government debt in 2021 will drop to 75.8%, still lower than the 92% of the EU average. During the outbreak, the number of EU countries which increased significantly compared to the 2019 debt: Greece (from 176.6% to 196.4%), Italy (from 134.8% to 158.9%) and Portugal (from 117.7% to 131.6%) were much higher than the 60% set by the Treaty of Maastricht. In addition, 11 other countries accounted for less than the estimated value of government debt in 2020, including the best performing group: Estonia (20.7%), Luxemburg (26.4%) and Bulgaria (25.5%).

Austrian finance minister Gernot Bl u Mel said that the current situation has made debt relief a priority over reducing debt. In the long run, the Austrian government will strive to reduce debt through economic growth and prudent fiscal policy. Wifo financial expert Margit Schratzenstaller pointed out that since the 2008 financial crisis, the Austrian government has greatly reduced its debt experience. Investment and economic growth are the key. This is also the focus of the current Austrian government.