Annual Review 2023

The Austrian Treasury is pleased to present the Annual Review 2023, which includes a comprehensive overview of Austria’s borrowing activities and debt portfolio as well as key economic data, outlook for the current year and a foreword by the Federal Minister of Finance.


  • The year 2023 was characterised by ongoing geopolitical uncertainties and an accelerating economic slowdown as well as the continuation of the ECB‘s monetary policy turnaround in response to the continued rise in inflation rates. This not only resulted in a series of key interest rate hikes, but also signalled the start of the gradual reduction of the Eurosystem‘s bond holdings, which had a significant impact on the secondary market. Nevertheless, the Austrian Treasury successfully executed its funding program:
    • In total, the Republic of Austria issued EUR 50.3 bn in government bonds. The outstanding volume of the short-term financing at the end of 2023 was EUR 24.7 bn.
    • Despite the changed interest rate environment, the massive uncertainties and high volatility in the market, the effective interest rate of the total financial debt portfolio has increased only moderately to 1.79% p.a. (vs. 1.20% p.a. as of end-2022) thanks to a forward-looking debt management strategy. The maturity of the portfolio lengthened slightly over the same period, from 10.9 to 11.1 years and total funding in 2023 was executed at an average yield of 3.3% p.a. and an average term of 7.3 years.
  • After a notable economic growth of 4.8% in 2022, Austria recorded a slight decline in real GDP by 0.8% in 2023. However, in fiscal terms 2023 was better than expected by most forecasters despite all the economic challenges. The debt/GDP ratio declined substantially to 76.4% of GDP (2022: 78.4%) and the general government deficit was reduced to -2.7% of GDP, below the 3% Maastricht limit for the first time since the beginning of the crises.
  • The Republic of Austria demonstrates its commitment to tackling environmental challenges by various government initiatives and substantial efforts in greening up public budgets. Since 2022, the Republic of Austria uses a globally unique wide range of Green financing instruments as a strategic second pillar. In 2023, this second green pillar of the financing strategy was further expanded by issuing Green Commercial Paper and Green EMTN for the first time. The utilisation of all green financing instruments available under the green framework published in 2022 enabled further diversification of the already broadly diversified investor base.
    • In June of 2023 the Austrian Treasury published the Green Investor Report 2022, the first report on the allocation and the climate and environmental impact of green financing by the federal government. The report for 2023 will be published before the summer of 2024.
    • For 2024 the new green financing volume is expected to be more than EUR 6.0 bn (2023: EUR 5.5 bn). As in previous years, the aim is to achieve a roughly 80/20 split between medium/long-term and short-term green financing instruments.
  • Funding Outlook 2024: We expect slightly lower financing volumes this year, with between EUR 45 bn and EUR 50 bn to be raised via government bonds (2023: EUR 50.3 bn). In addition, a slight increase in the portfolio of short-term financing instruments of EUR 2 to 4 bn is planned. 
    • The split of the RAGB financing volume was adapted at the start of this year. In order to act in an even more transparent and predictable manner for the capital market and subsequently promote liquidity, the proportion of the RAGB financing volume issued in auctions was increased by around 10% this year, while the share of bilateral increases and own-quota issues was reduced by the same amount.
    • And – as announced last year by our Federal Minister of Finance – we will introduce a safe and attractive retail offering in Q2 2024. This will give private investors simple and direct access to federal securities.
    • As announced last year by our Federal Minister of Finance – we will introduce a safe and attractive retail offering in Q2 2024. This will give private investors simple and direct access to federal securities.
    • And since March 1, 2024, Austrian Government Bonds are now tradeable as part of the continuous auction procedure on the Vienna Stock Exchange. This increases the attractiveness of Austrian Government Bonds (especially for retail investors) via better prices and provides additional transparency to the broader public.