Image: APA/HANS PUNZ
That says the latest economic survey by the Federation of Austrian Industries (IV), which was presented on Tuesday. For example, a new or similar condition of the investment premium for the Covid pandemic is needed so that the probably inevitable winter recession in industry can be overcome quickly, according to IV Secretary General Christoph Neumayer.
According to Neumayer, it’s about investing as quickly as possible out of the “valley of tears”. “The recipe for success of the investment bonus has promoted targeted investments in times of the Covid pandemic – every euro invested has mobilized around 10 euros in investments.” According to the industry representative, the bonus could also be developed further, which would certainly help a lot.
“The deterioration in the economic outlook is structural, not seasonal,” said IV chief economist Christian Helmenstein to journalists. The IV economic barometer is exactly zero – the balance of the average current assessment of the business situation and that for the next six months. “At best” next spring things could go up again.
A few thousand industrial jobs are also likely to be lost in the next three months. “This underlines how much the production is burdened,” said Helmenstein. However, most jobs are shaky in the construction and related trades, it said. In order to stimulate this, Neumayer spoke out in favor of relaxing the lending rules (KIM-VO). In other areas, on the other hand, employment continues to grow. The basic shortage of skilled workers is still there.
Working time reduction debate “absurd”
From Neumayer’s point of view, a debate about reducing working hours can be avoided due to the weak economy, and such a debate is “absurd” in the public sector. “We should appreciate performance,” the industry representative once again called for the implementation of long-standing demands such as tax relief for overtime and treats for people who continue to work after reaching the standard retirement age.
In the current situation, “above all, it’s about reducing uncertainty”, which, in addition to the working time debate, is also being fueled by the discussion of new taxes, according to Neumayer. Companies worried about the impending additional costs. A reduction in bureaucracy is also necessary – in order to achieve the energy transition more quickly and at the same time to drive the economy thanks to investments in it.
No impetus is to be expected from the global economy, and growth is also weak here. The euro has also appreciated by 9 percent against the dollar within a year, which does not provide any extra support for exports.
According to the survey, industrial goods prices will fall in the coming months. Overall, this should slow down inflation only slightly. The prices for services continue to rise.
more from economy
