Austria's WIFO slashes 2023 GDP forecast, warns of stagflation

https://au.finance.yahoo.com ^ | 10/7/2022 | reuteurs

[RomanSoldier19]

Austria's WIFO institute slashed its 2023 forecast on Friday, saying record inflation rates resulting from the war in Ukraine are steering the economy towards stagflation.

Austrian gross domestic product is expected to grow by 0.2% in real terms in 2023, WIFO said, slashing its June prediction of 1.6% growth.

With inflation remaining high in 2023, Austria's economy is heading for stagflation for the first time since the 1970s, said the think tank in its statement.

[RomanSoldier19]

What is Austrian Economics? | Mises Institute

https://mises.org/what-austrian-economics

[monkeyshine]

They all misread the problem. Inflation started out as a supply problem, not so much a demand problem.

Made worse by Biden's energy policy jacking up input costs across the board.

Federal Reserve and ECB both getting tripped up by reckless government spending.

Russians saw weakness so they invaded.

OPEC sees weakness in Western leadership and economic outlook so they cut back production, jacking energy prices without consequence.

Fed and ECB are basically impotent at this point. All they can do is make and pop bubbles. We'd all be better off if they just bought one of these:

[RomanSoldier19]

all true