Update of the long-term economic forecast for Austria

IHS and WIFO have developed the long-term forecast and simulation model A-LMM (Austria Long-Run Macro Model). This study uses a new growth model based on an extended production function that takes into account the interaction of demographic factors with the development of technical progress. Thus growth rate of total factor productivity (TFP) reacts to changes in the expected age structure of the population. The model forecast will include macroeconomic variables, the development of the labour force, and other variables relevant for the forecast of the Old-Age Security Commission.