Joint work with Richard Sellner and Martin Schneider

Abstract

This paper provides empirical estimates on the impact of a 50% rise in energy prices (relative to 2019) on Austrian GDP. We find that in such a scenario, Austrian GDP could decrease by up to 0.9% in the short run. Should energy prices stay higher permanently, additional output losses could occur via downward adjustments in capital stock. Our estimates highlight the relevance of energy prices for policymakers and can inform subsequent analyses on different economic policy options.

Published in: OeNB Bulletin, 01/2026.
Paper