Forecast of the Austrian Economy 2021–2025

Economy overcomes coronavirus shock

With the successful fight against the coronavirus pandemic and the subsequent easing of restrictions, the global economy is recovering from its historic crisis.

The lifting of most containment measures and the positive international economic conditions are driving the economy in Austria. After the strong slump in the previous year, economic output should increase strongly this year and the next. For the entire forecast period 2021 to 2025, the Institute expects an increase in real GDP of 2 ½ % per year on average. With the economic recovery, inflation has also picked up. However, with 2 % to 2 ¼ %, price pressure should remain subdued. With the improved economic situation and massive spending on active labor market policy, unemployment, which rose sharply in the previous year, should fall to the pre-crisis level of 7 ½ % by the end of the forecast period. Due to the deep economic slump and the necessary fiscal policy measures, public budgets are heavily burdened in 2020 and 2021. In the remaining forecast period, however, the budget deficit should decline significantly. After overcoming the crisis, the economic policy strategy should aim at strengthening the sources of economic growth and combating climate change.

Economic Forecast by IHS