Economic Researcher at the JKU Expects Inflation to Remain High

Friedrich Schneider, an expert economist, expects inflation to remain at 5 to 6 % over the next two years.

[Translate to Englisch:] Prof. Schneider

Following an analysis of the overall economic climate, including taking measures by the European Central Bank (ECB) into account, Prof. Schneider has mixed feelings about the future. The economist says while it is true that inflation will drop, he considers the targeted inflation rate of 2% as unlikely. Prof. Schneider argues in favor of moving away from limitless consumerism and remarked: "In order to fight inflation, we will have to cut back." In any case, he said, we must remain alert as we have yet to avert the threat of a severe recession and an explosive rise in unemployment.

Unreported Income on the Rise
High inflation is also impacting ‘off-the-books’ work (unreported income) and in Germany, Prof. Schneider predicts a massive increase of € 22.1 billion to € 360.31 billion in 2022. He added, "This means that unreported income accounts for around 10.1 % of Germany's GDP." The reason, he says, lies primarily as a result of the energy crisis and the high inflation rate.

Click here, opens an external URL in a new window to learn more.