Macroeconomic Effects of both Stimulus Packages and the Tax Reform in 2009

This study examines the effect on the whole economy of both economic stimulus packages and the tax reforms in 2009 as well as the measures taken in the regions to boost the economy and employment in Austria. Calculations according to models show that the cyclical slump in Austria in 2009 and 2010 was cushioned to the extent of 2.1 percent of real GDP. Almost half of this stimulus came about as a result of the economic stimulus programs and the tax reforms implemented at a federal level, 0.4 percentage point came from measures implemented at a regional level. The remaining 0.8 percentage point are due to the economic stimulus programs of Austria's most important trading partners. In total the stimulus programs secured 41,500 jobs and curbed the rise in unemployment by 0.7 percentage point.