Autumn Forecast of the Austrian Economy 2021-2022

Upswing with Obstacles

After the slump in economic output of 6.7 % last year, caused by the coronavirus pandemic, the Austrian economy has gained surprising momentum since spring this year.

Hence, output returned to its pre-crisis level already in mid-2021. The Institute therefore raises its forecast for economic growth in the current year to 4.5 %. For the coming year, again a growth rate of 4.5 % is expected. With the strong economic recovery, the unemployment rate should fall to 8.1 % in the current year and to 7.2 % next year. Annual inflation in 2021 is projected to climb to 2.6 % on average this year and should then decline to 2.3 %.

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