In 2023, Austria’s real gross domestic product (GDP) fell by 0.7 %. With stronger consumer demand due to rising real income and a brightening of the European economy, the Austrian economy should recover in the coming years. GDP is expected to grow by 0.8 % in 2024 and 1.5 % in 2025. Inflation, as measured by the rise of the national consumer price index, should likely slow down from 7.8 % this year to 3.9 % next year and to be 3.0% in 2025. The labor market situation should remain stable. Against declining discretionary crisis measures, the general government deficit will be high in the next two years at 2.3 % and 2.2 %, respectively. A higher persistence of inflation, a lack of recovery in the global economy, particularly in the industry sector, or a weaker labor market could jeopardize the economic upturn.