Autumn Forecast of the Austrian Economy 2024–2025

Austria's economy falls behind in Europe

Austrian real GDP continued to decline in the first half of the year. The recession in industry and in construction has continued, and despite real income growth, consumption has not picked up.

Leading indicators do not point to a rapid recovery. IHS is therefore forecasting a 0.6 % decline in GDP in the current year. In 2025, output is likely to increase by 0.8 %. Inflation, as measured by the annual change of the consumer price index, should fall to 3.0 % this year and to 2.4 % next year. The unemployment rate is likely to rise to 7.0 % and 7.2 % respectively. IHS expects the general government budget deficit, according to the Maastricht Treaty, to rise to 3.5 % of GDP this year and to remain at approximately that level next year without consolidation measures.

IHS Economic Forecast