Austria’s State Debt Continues to Rise in Q3 2024
According to a statement released by Statistics Austria, the country’s public debt stood at 398.4 billion euros as of September 30, an increase of 3.6 billion euros from the previous quarter.
This marks a continued rise in public debt, with the latest deficit amounting to 4.5 billion euros, equivalent to 3.8% of the country’s gross domestic product (GDP).
“Despite efforts to reduce the debt, Austria has continued to build up its debt in the third quarter of 2024” said Tobias Thomas, General Director of Statistics Austria, in a press release.
The debt-to-GDP ratio has also increased, from 82.9% in the second quarter to 83.2%, further deviating from the Maastricht target of 60%.
Of the 398.4 billion euros in debt, 354.1 billion euros are in the form of bonds, 42.3 billion euros are in the form of loans, and 2 billion euros are in the form of deposits.
The federal sector saw the largest increase in public debt, with new commitments totaling 1.8 billion euros. A significant factor in this increase is the financing of infrastructure projects, particularly in the state-owned rail infrastructure. The debt taken on was targeted at funding investments in the expansion and modernization of the infrastructure.
Similarly, the state and municipal sectors also saw an increase in debt, mainly due to the need to cover ongoing deficits.
Austria now faces the challenge of addressing the rising debt and deficit, while still investing in the urgently needed infrastructure.