Spring Forecast of the Austrian Economy 2024–2025

Private consumption supports a slowly recovering economy.

The Austrian economy has made a weak start to the current year. However, in the second half of the year, with increasing demand from private households due to rising real income and a brightening of the economy in the euro area, the domestic economy should return to a moderate growth path.

This year, gross domestic product is therefore likely to increase by 0.5 % and by 1.5 % in the coming year. Inflation, as measured by the consumer price index, should fall to 3.5 % this year and drop further to 2.6 % next year. However, inflation in Austria will remain well above the euro area average for some time to come. In 2024, the unemployment rate is likely to rise to 6.9 % and decrease to 6.6 % in 2025. Weaker private consumption or a prolonged slump in international industrial production could delay the recovery.

IHS Economic Forecast