Macroeconomic assessment of the Austrian Recovery and Resilience Plan

The Institute for Advanced Studies (IHS) was commissioned to conduct an independent assessment of the economic impact of the reforms and investments contained in the Austrian Recovery and Resilience Plan (RRP). The total budget requested for the plan amounts to €4.5 billion (approximately 1.2% of Austrian GDP forecasted for 2021) and consists of reforms and investments in four categories, or “components” – sustainable recovery, digital recovery, knowledge-based recovery and fair and just recovery (“nachhaltiger, digitaler, wissensbasierter and gerechter Aufbau”). The plan should be implemented until the end of 2026. The Austrian RRP increases public and private investment demand and leads to substantial increase in GDP in the short and medium run. In particular, grants and subsidies stimulate a substantial increase in private investment.