Against the backdrop of high inflation, restrictive monetary policy and the weak international economy, real GDP in Austria is expected to shrink by 0.4 % this year. Next year, a strengthening of the global economy and strong growth in private consumption are expected, supported by rising real income. As a result, in 2024 GDP should increase by 0.9 %. Inflation, measured by the consumer price index, is expected to reach 7.8 % this year and 4.2 % in 2024. With unemployment rates of 6.5 % and 6.8 %, the Austrian labor market is likely to remain robust. A stronger deterioration of the domestic labor market due to sharply rising unit labor costs, or a failure of global industrial production to pick up could jeopardize the upswing next year.