The record inflation, initially driven by a rise in energy prices, and the distortions in the wake of Russia’s war against Ukraine led to a stagnation of the Austrian economy. As these effects begin to fade, the economy should return to a subdued growth path. For the forecast period 2023 to 2027, IHS expects an average annual real GDP growth of 1.2 %. Following the increase of inflation, driven by the prices of energy, in the previous year, inflation has widened significantly and is expected to slowly decline. On average, IHS expects an inflation rate of 7.5 % in 2023. In the coming years, price pressures are expected to ease noticeably, meaning that the inflation rate will fall to 2.3 % by 2027. Starting from 6.5 % in the current year, the unemployment rate should fall to 5.8 % by the end of the forecast period. Economic policy should be geared towards strengthening potential growth and supporting the energy transition.