Summer Forecast of the Austrian Economy 2024–2025

The economy still lacks momentum

Since the last quarter of 2023, Austria’s economy has been growing quarter-on-quarter, albeit slowly. The economy should gain momentum in the second half of this year as export demand from the euro area picks up.

As a result, GDP should increase by 0.3 % in the current year and by 1.6 % in the coming year. Inflation, as measured by the change in the consumer price index, should fall to 3.2 % this year and 2.7 % next year. In line with economic development, the unemployment rate is likely to rise to 6.9 % this year and fall to 6.6 % in 2025. The general government deficit in accordance with the Maastricht Treaty could rise to 3.0 % of GDP this year, up from 2.6 % last year, and remain at approximately the same level next year.

IHS Economic Forecast