The Austrian financial sector has made its choice: The stock market taboo word for 2023 is "stagflation". The combination of stagnation and inflation – i.e. rising prices coupled with little or no economic growth – struck a particular chord this year. Terms related to the price level – as well as inflation itself – were generally trending in this year's poll. For example, "deflation" and the buzzword "greedflation" were among the title contenders. The latter describes inflation driven by exaggerated price demands from companies. However, there is no evidence of this, as the Federal Competition Authority in the retail sector recently stated.
"The word stagflation appropriately describes where companies, investors and the population in general are feeling the pinch this year: geopolitical tensions, high interest rates and persistent inflation are leading to a challenging economic environment and have also contributed to a sideways movement on the markets. In this respect, it is easy to understand why it was chosen as the taboo word," says Christoph Boschan, CEO of the Vienna Stock Exchange.
The shortlist of favorites also included the capital gains tax, which amounts to 27.5% on income from capital assets in Austria. "The capital gains tax on securities is not only a tax disadvantage for private pension provision. It also has an inhibiting effect on the Austrian capital market, which in turn slows down innovation and progress. The reintroduction of the retention period – i.e. tax relief for long-term securities holdings – as set out in the government programme is long overdue," says Boschan.
About the stock market taboo word
Since 2017, the Vienna Stock Exchange has annually asked the Austrian financial community to nominate the stock market taboo word. The jury's decision is based primarily on the topicality, relevance and linguistic significance of the words. This year's seventh stock market taboo word follows last year's winner "excess profits tax". Previously, the "specter of inflation" (2021) haunted the capital market. In the years before that, "corona-related" (2020), "Brexit" (2019), "punitive tariffs" (2018) and "negative interest rates" (2017) prevailed.
