The debt/GDP could reach 120% – Public finance
Rapid demographic aging puts public finances at risk
Vienna
The level of public debt is likely to skyrocket in Austria within years, combining the country is facing an unprecedented situation. In just a decade, Vienna could violate European debt rules. The main reason is related to the aging of society. The alarm is sounded by the Ministry of Finance.
Every three years, the dicastery prepares a long-term budget forecast for the next 30-40 years. And most of the previous times a steady decline in relative debt (as a percentage of GDP) was expected. And so it was too in 2016 and 2019when public debt was expected to rise towards 50 or 65% of GDP.
The latest estimate remains public shortly before Christmas, however the trend could change significantly towards the end of this decade. And it could get worse and worse, until it reaches over 120% of GDP by 2060.
Significant numbers that can also be explained by another trend. According to a survey commissioned by Paarship, they live in Austria two million singles, which indicate about 30% of the population. The European country risks finding itself older, more alone and more indebted.