Austria says Ukraine war is swelling deficit back to EU's 3% limit
The Ukraine war's negative impact on economic growth and associated costs such as reducing dependence on Russian natural gas have forced Austria to increase its budget deficit and debt forecasts for this year, the Finance Ministry said on Wednesday. Austria, as did many of its peers, spent lavishly on measures to cushion the blow of the coronavirus pandemic and had expected a stronger economic recovery this year to help it bring its budget deficit back within the European Union's limit of 3% of gross domestic product (GDP) for the first time since 2019. Economic researcher WIFO, which provides the forecasts on which the government bases its budget, last month cut its GDP growth outlook for this year to 3.9%, almost a percentage point less than the 4.8% it expected when the 2022 budget was announced last October.
