Assessing the Impact of Inflation, Exports, Imports, and Final Consumer Spending on Austria's Economic Growth

Abstract

The purpose of this study is to investigate the impact that inflation, exports, imports, and final consumption expenditures have had on the expansion of Austria's economy.  For the purpose of predicting the influence of inflation, export, import, and final consumption spending on real GDP, the study utilized ordinary least squares regression and carried out a number of diagnostic tests. These tests included the normality test, the serial correlation test, the multicollinearity test, the unit root test, and the heteroskedasticity hypothesis test.  All of the information was obtained from the World Bank Indicator in Austria between the years 1974 and 2023.

According to the findings of the research, the expenditure on final consumption (FCE) has a positive and considerable influence on the expansion of the gross domestic product (GDP).  There is a positive and considerable influence that export (EXP) has on the process of GDP growth.  Despite the fact that inflation (INF) has a large and detrimental effect on the expansion of GDP.  To add insult to injury, imports (IMP) have a favorable but minor influence on the expansion of GDP.  Based on these data, it appears that the most important factors for the expansion of Austria's economy are the promotion of foreign commerce, the stimulation of domestic demand, and the management of inflation.

 It is anticipated that the outcomes of this research will have important significance for policymakers, corporations, and other stakeholders in terms of developing a knowledge of the possibilities and difficulties that are currently confronting the Austrian economy and navigating them.

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