Austria's Public Debt Ratio Rises to 83.7% of GDP in Q3 2025

Austria's Public Debt Reaches €423.9 Billion

Austria's public debt ratio escalated to 83.7 percent of Gross Domestic Product (GDP) in the third quarter of 2025, marking a significant increase from 81.5 percent recorded in the same period a year prior. The total government liabilities amounted to €423.9 billion as of September 30, 2025, according to data released by Statistics Austria. This figure reflects an increase of €11.6 billion compared to the end of the second quarter of 2025, when the ratio stood at 82.2 percent.

Manuela Lenk, Director General Statistics at Statistics Austria, noted the continued accumulation of debt. The majority of the debt, specifically €376.4 billion, was attributed to bonds, with €45.5 billion in loans and €2.0 billion in deposits as of the reporting date.

Factors Driving the Debt Increase

The rise in public debt is primarily linked to increased borrowing within the central government sector, which saw its liabilities grow by €9.8 billion. This borrowing was largely aimed at accumulating precautionary liquidity. Concurrently, the state and municipal sectors each experienced a €0.9 billion increase in debt, primarily to finance their current deficits.

The overall government deficit for the third quarter of 2025 stood at 3.1 percent of quarterly GDP, equivalent to €3.9 billion. Government revenues for the quarter were €63.2 billion, while expenditures reached €67.1 billion. For the first three quarters of 2025, the cumulative deficit amounted to €17.0 billion, or 4.5 percent of GDP.

Broader economic challenges have also contributed to the widening fiscal gap. A weakened economy, coupled with less tax revenue, higher social spending, and reduced economic activity, has put pressure on public finances. Concerns about a potential recession in 2025, alongside issues such as collapsing exports, supply chain disruptions, and falling consumption, have further exacerbated the situation. Additionally, rising public service wages, pensions, and social benefits, as well as increased interest costs on existing debt, have played a role in the expenditure growth.

Economic Implications and Outlook

Austria's current debt and deficit figures place it above the European Union's Maastricht criteria, which stipulate a maximum debt-to-GDP ratio of 60 percent and a deficit-to-GDP ratio of 3 percent. This situation makes an Excessive Deficit Procedure from the EU increasingly likely.

The Austrian Finance Ministry had projected a 4.5 percent GDP deficit for 2025, with the government's budget plans anticipating a national debt ratio just under 85 percent. FPÖ budget spokesman Arnold Schiefer voiced alarm, stating that the government 'continues to save too little on itself and in the structures' and that the increase in debt shows 'business is being conducted without regard for the financial future of our country.'

Looking ahead, the government debt ratio is expected to continue its upward trend. The European Commission projects it to reach 82.8 percent in 2026 and 83.9 percent in 2027. National planning forecasts a debt ratio of 84.7 percent for 2025 and 86.2 percent in 2026, with a slight increase to 87.0 percent by 2028 before a projected decline in 2029. The government is initiating fiscal consolidation efforts to manage these trends.