Spring Forecast of the Austrian Economy 2023–2024

A robust labor market supports the economy

In Austria, real GDP has been stagnating since mid-2022.

High inflation as a result of energy prices, elevated uncertainty and weak international demand are all weighing on the domestic economy. With global demand picking up and inflationary pressure easing, the Austrian economy should return to a stable growth path in the second half of 2023. The Institute thus expects growth rates of 0.5% and 1.4% for 2023 and 2024, respectively. Inflation should peak at 7.5% this year and is projected to decline to 3.5% next year. The unemployment rate is expected to remain low in 2023 and 2024, at around 6.3%. Against the background of high inflation and future burdens on public budgets, a restrictive fiscal policy is urgently needed.

About the economic forecast at IHS