Good mood and optimism in the South

The economic data for 2020 is encouraging and much better than was expected at the start of the Covid pandemic. Now it is time to invest.

Increased export turnovers and a positive business outlook defined the Carinthian Investment and Business Conference, where business representatives gave the provincial government a first-hand account of the atmosphere across the sectors. The appropriate business and investment index shows that Carinthia mastered the pandemic well and now experiences an economic upturn. Surveys among regional businesses show that they consider the opening of the Koralmbahn railway line (planned for 2026) and the subsequent closer ties between Carinthia and Styria a very positive development for the future.

With an economic slump of 5.6 percent Carinthia managed 2020 better than the Austrian average of minus 6.5 percent. The recently published export data for 2020 confirm this comparatively good result: The decrease of 7.8 percent is much better than feared at the start of the pandemic. Still, the surplus of 630 million euros in the foreign trade balance is impressive, everyone agreed at the conference.

Promoting Carinthia as a place to work and live

“We are already right in the middle of the restart after the pandemic’s many challenges,” said Governor Peter Kaiser, underlining the good cooperation of the Province with the health and social services, which stood the test of the pandemic. “The figures show that we managed to get out of the economic crisis quite well. We will keep doing everything we can to offer people the best-possible protection. We commit to vaccinations and testing, and a vaccination rate as high as possible,” Kaiser said. For the job market, Carinthia needs the right combination of skills and an attractive business location. In this context, Carinthia will also need a new approach in terms of the immigration of people that are needed to secure the economy and the wealth of the people. “Carinthia offers education, innovation, tourism, more markets and cross-regionality. Furthermore, we will have improved economic centres thanks to the Koralmbahn railway line. And we will be blowing our trumpet on these things internationally,” said Kaiser.

Vice-Governor and Councillor for Employment and Economic Promotion Gaby Schaunig considers the pandemic a magnifying glass that has highlighted Carinthia’s weaknesses but also its strengths. One of these strengths is the Province’s collaboration with health and social services, businesses and the job centre: “We have been a winning team since 2013 and did not need to start building trust only during the pandemic.”

Another of Carinthia’s strengths is its good mix of trades and industries, its industrial sector, its research and its high quality of life. Businesses are investing specifically into sustainability, greening, digitisation and research, Schaunig said. She also highlighted the Green Tech Cluster, operated with the Province of Styria, the Silicon Austria Labs and the Silicon Alps Cluster. Carinthia wants to approach more small businesses, mainly as part of the Digital Innovation Hub, that are looking at digital transformation with sustainability in mind. Plans for the job market include a stronger focus on skills; Schaunig pointed out that there is already a training scheme in place, organised in cooperation with the Carinthian building sector.

Cautious optimism

Sebastian Schuschnig, Councillor for Economic Affairs and Tourism, spoke of a gasp of relief among Carinthia’s businesses and a cautiously optimistic outlook for the future. He considers the investment bonus a highly effective instrument. It helped businesses across many sectors to invest into greening, expanding capacities and innovation. Schuschnig also highlighted the positive development of Carinthia’s exports. The economic upswing has also been carried by the Province’s investment boosts, securing added value and jobs. 50 million euros have been put aside for roads, bridges and bicycle paths in 2021 alone. “Investments into the infrastruc-

Carinthian Investment and Business Conference: Christoph Schneider, department head for trade policy at the Austrian Economic Chamber, Sebastian Schuschnig, Councillor for Economic Affairs and Tourism, Gaby Schaunig, Vice-Governor and Councillor for Employment and Economic Promotion, Jürgen Mandl, head of the Carinthian Economic Chamber, and Governor Peter Kaiser

ture are not only important for a business location but also for a stimulus plan. We will need a good infrastructure in future to transport people and goods from A to B – no matter what type of engine or propulsion we are using,” Schuschnig said and underlined: “We must not curb these investments. When it comes to the traffic infrastructure in Carinthia, there definitely won’t be a building freeze.” But Schuschnig also pointed out that, “many businesses in almost all sectors are urgently looking for staff” – a common effort is needed to find a solution.

Strong export economy and …

Christoph Schneider, department head for trade policy at the Austrian Economic Chamber, presented details from the Carinthian business and investment survey. The outlook of entrepreneurs for 2022 is much better, overall turnovers and orders are well into the black. But there is still some restraint in investments despite Carinthia managing the economic crisis of the pandemic “almost the best of all”, says Schneider: “In Tyrol, the slump was almost twice as big.” 80 percent of those surveyed expect to be back at the levels before the crisis within one year; 53 percent of Carinthian businesses say they have already clawed their way back to the pre-crisis levels. Almost 80 percent of those surveyed consider the opening of the Koralmbahn railway line and the subsequent closer ties between Carinthia and Styria very positive. When asked about the effects of business policies, 93 percent said that they believe in the positive aspects of innovation and research. Exports continue to be the driving force behind the upswing, Schneider said: “Exports are the pacemakers of our sprint back.”

… positive mood in Carinthia

Jürgen Mandl, head of the Carinthian Economic Chamber, also underlined the good mood among entrepreneurs: “That’s how we managed to overcome the last 18 months.” Now everything needs to be done to make sure we stay clear of more trouble in autumn and winter. Vaccinations are the only effective way to keep the virus at bay, Mandl stressed: “We simply can’t lock down everything once again.” But he also pointed out that not all sectors are back on track and benefitting from the economic upturn: “We need to find new ways to host events and markets in a suitable setting to give those entrepreneurs their business back”. ◆