Austrian Institute of Advanced Studies - IHS
Our first activity in 2023 was the visit of IHS, the Insitute for Advanced Studies in Vienna, January 26. We were received by the Director of IHS, Prof. Dr. Klaus Neusser, who gave us a lecture about "The current Austrian economic situation and its future development”.
The focus of the presentation was on the macroeconomic status of the Austrian economy and its expected future development. Issues touched upon were the inflation and energy situation as well as the economic policies undertaken by the government. Finally, the long-term prospect was discussed.
Prof. Neusser pointed out that the Austrian economy did better in 2022 than it had been expected. Real GDP 2022 increased 4,8%. However for 2023 he expected only 0,4% and for 2024 1,2%. The unemployment rate was good, which is partly due to the retirement of the baby boomer generation. A serious problem is the lack of specialists of STEM subjects (MINT-Fächer). The inflation rate was 8,5% in 2022 and the expectation for 2023 was 6,7% and for 2024 2,0%.
Due to the consequences of supply chain disruptions he expects rising near shore investments. Prof. Neusser criticized, that the ECB was reacting too late in view of the high inflation. The US had reacted earlier with rising interest rates. In Austria strikes could be avoided due to the cooperation of Chambers and Unions. High energy prices due to the war lead to a restructuring of the economy. High gas prices may lead to the end of some industries. A lot has to be done for the energy transition such as storage facilities, high voltage lines, alternative energy investments etc. Prof. Neusser was critical about the low level of investments in Austria and of inefficiency in the public field. Regions and communities would need more financing via the financial equalization (Finanzausgleich). On the other hand further financial stimuli were not necessary. The budget deficit was close to the Maastricht limit, but medium consolidation is necessary.
Director – Prof. em. Dr. DI. Klaus Neusser
As of May 2, 2022, Prof. em. Dr. DI. Klaus Neusser has been appointed Director of the Institute for Advanced Studies (IHS) on an interim basis. His research focuses on macroeconomics and time series analysis. After studying technical mathematics with a minor in economics, Klaus Neusser received his doctorate from the Vienna University of Technology in the Technical Sciences (PhD) and habilitated at the University of Vienna in 1990 in Economic Theory and Economic Policy as well as in econometrics. From 1993 to 1994 Klaus Neusser was a full professor in Economics at the European University Viadrina in Frankfurt (Oder), Germany. From 1994 to 2019 he was a full professor of economics, in particular Econometrics and Macroeconomics at the University of Bern, Switzerland.
The Institute for Advanced Studies (IHS) develops research questions in dialogue with politics and science and contributes to both scientific and policy-relevant issues. Its scientists work in an application-oriented manner on research questions that affect current societal challenges. IHS is known for regular research results, such as the quarterly published economic forecast, the European Social Survey, the National Education Report or the Student Social Survey. This broad spectrum of content is currently represented by eight research groups, which cooperate on an interdisciplinary basis. The Institute for Advanced Studies (IHS) celebrates its 60th anniversary in 2023. Please visit for more information here: www.ihs.ac.at/research/60-jahre-ihs