After a period of strong growth, the Austrian economy has been in stagflation since mid-2022. However, as inflationary pressures ease and the international economy brightens, domestic output growth should pick up again by the end of 2023. Within the coming year, sharply increasing real income should strengthen private consumption. Therefore, unchanged from spring, the IHS expects GDP growth rates of 0.5% and 1.4% for 2023 and 2024, respectively. The inflation rate is expected to reach 7.5 % this year and fall to 4.0 % next year. This means that inflation will decline more slowly in the coming year than expected in March. With unemployment rates of 6.5 % and 6.3 %, respectively, the labor market remains robust. Against the background of high core inflation and the future burden on public budgets due to an ageing population and the energy transition, a more restrictive fiscal stance is inevitable.