WKÖ calls for a reduction in non-wage labor costs, energy costs and optimization of the investment allowance
Vienna (OTS) – The economic report published today by WIFO does not promise a rapid economic recovery, on the contrary: the downturn is noticeable on a broad basis. “The Austrian economy is still in recession. Improvement is not in sight. It is high time to finally take the necessary steps quickly and create scope for investments. In this way, we stimulate economic growth and strengthen Austria as a business location,” says Karlheinz Kopf, Secretary General of the Austrian Chamber of Commerce (WKÖ). The industrial economy, which has been weak for months, is now having an impact on other areas of the economy. According to Wifo, the transport industry, business-related services and trade are now affected.
The construction industry is particularly affected. According to Wifo, the low point will probably not be reached until 2024. “Above all, we need investment incentives for private construction, for example private housing. Because this is completely low due to the interest and price situation,” says Kopf. The sharp increase in loan interest and construction costs led to a decline in gross value added in the construction sector in 2023, which will also be significant in 2024 (decrease of 3.5% according to the WIFO December forecast). Construction investments are also particularly affected, with a decline of 4 percent expected to be as severe as in 2023.
Bundle of measures to strengthen the industrial location
The WKÖ General Secretary is calling for a whole package of measures to strengthen the location: “Our companies need noticeable relief quickly, especially in terms of bureaucracy and labor costs. Above all, we have to reduce non-wage labor costs,” says Kopf. When it comes to the share of non-wage labor costs, Austria is in fifth place in the EU comparison and is therefore in the top European field. This means that our heavily export-oriented economy cannot keep up with competitors in terms of costs and is losing competitiveness, says Kopf.
Kopf also calls for relief for companies in connection with the persistently high energy prices. “Companies face major challenges in this area. “We need planning security and quick answers to open questions about network expansion, energy storage and a future hydrogen strategy,” says Kopf.
The investment allowance also needs to be optimized. It should be designed in a similar way to the expired investment bonus and higher tax allowance rates and favor digital investments. “Especially in the current economically challenging situation, we have to make it as easy as possible for companies to make investments, because the healthiest growth is still investment-driven. The focus is on achieving ecological and digital change. “The companies need the support of politicians,” says Kopf. (PWK052/PAT)
Questions & Contact:
Sebastian Winter
Austrian Chamber of Commerce
Spokesperson for the Secretary General
T 0590900 4462
E sebastian.winter@wko.at
Current news from the economy for the economy –
#WKÖ #quickly #create #scope #investments