After World War I, Austria faced significant problems due to the dissolution of the Austro-Hungarian Empire, which resulted in the loss of territory and a drastic reduction in population and resources. The newly established Republic of Austria struggled with economic challenges, including hyperinflation and high unemployment, exacerbated by the economic repercussions of the war and the Treaty of Saint-Germain, which imposed heavy reparations and restricted military capabilities. Additionally, political instability and the rise of extremist movements further hindered the country’s recovery and unity.
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