Research Update: Austria Outlook Revised To Stable From Positive On Rising Economic Risks; 'AA+/A-1+' Ratings Affirmed

We expect Austria's real GDP growth will remain relatively strong at 3.6% in 2022 and the government will continue on a budgetary consolidation path through 2025. The potential for Russia to further cut energy supplies to Europe is a key risk for Austria and its major trading partners. We therefore revised our outlook on Austria to stable from positive and affirmed our 'AA+/A-1+' long- and short-term ratings. The stable outlook balances our view of Austria's solid macroeconomic and credit metrics, including our expectations on economic growth and further budgetary consolidation, against the rising risks to the economy emanating from the combination of high inflation and dependence on Russia for energy supplies. On Aug. 26, 2022, S&P Global Ratings revised its

...- We expect Austria's real GDP growth will remain relatively strong at 3.6% in 2022 and the government will continue on a budgetary consolidation path through 2025. - The potential for Russia to further cut energy supplies to Europe is a key risk for Austria and its major trading partners. - We therefore revised our outlook on Austria to stable from positive and affirmed our '##+/A-1+' long- and short-term ratings. - The stable outlook balances our view of Austria's solid macroeconomic and credit metrics, including our expectations on economic growth and further budgetary consolidation, against the rising risks to the economy emanating from the combination of high inflation and dependence on Russia for energy supplies....

Research Update