International Monetary Fund. External Relations Dept.
In Austria, the ratio of the elderly to people of working A. age will double over the next 50 years. This dramatic demographic shift—brought on by a major decline in fertility and mortality rates since the 1960s—will be more severe than in many other industrial countries (see chart). It will increase public spending on pensions, health care, and long-term care and decrease tax and social security revenues. In a new IMF Working Paper, LeifLybecker Eskesen concludes that ensuring long-term fiscal sustainability in Austria will require bold reforms.