AUSTRIA 2020: The impact of medium-term global trends on the Austrian economy

This study quantifies possible impacts of medium-term structural changes in the global economy on the Austrian economy. Emphasis is placed on the effects of continued medium term growth in emerging markets, especially in Asia and Latin America, on the structure of the Austrian economy. The issues here include the identification of price effects (due to increased demand for raw materials) that can be expected, as well as how these may impact the commodity composition of both exports and imports. Underlying global trends also involve both investment patterns and total factor productivity trends at a more regional level, also impacting on the Austrian economy. Finally, these structural changes at the global level also lead to changes in household incomes and the cost of living in Austria, impacting on patterns of inequality in Austria at the household level.