The cessation of gas supplies from Russia may lead to a reduction in Austrian GDP by 3%

A study published by the Vienna Institute for Advanced Study IHS today, Thursday, July 21, says that Austria’s gross domestic product could fall by 3% if Russian gas supplies are cut off.

According to experts, in the event of a gas supply cut, gas consumption in the country will have to be reduced by 27% from autumn 2022 to summer 2023, which in turn will lead to a fall in GDP by 3%.

Economist Michael Reiter said: “In order to create incentives for savings, price increases in European gas markets must be passed on to end consumers. Saving gas by households and in electricity generation will reduce the burden on industry and soften the blow to GDP.”

Earlier, the International Monetary Fund published a forecast indicating a decline in the gross domestic product of European countries such as Hungary, Slovakia and the Czech Republic, due to the possibility of cutting off Russian gas supplies, which could reach 6%, as the Fund specialists assessed the possible consequences of a complete cessation of Russian gas supplies to Europe and came to the conclusion that the countries of Central and Eastern Europe risk not receiving up to 40% of their gas consumption.

In addition, Austria, Germany and Italy will face significant challenges, but the extent of these challenges depends on the response of the authorities and the ability of the market to adapt to potential conditions.

Source: TASS

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