Winter Forecast of the Austrian Economy 2022–2024

Resilient economy in a difficult environment

In 2022, real GDP in Austria is expected to have grown by 4.8 %.

Since the middle of the year, however, economic growth has lost momentum due to the sharp rise in energy prices, high uncertainty, and the weaker international demand. After a growth dip in the winter, in Spring the Austrian economy should return to a stable growth path, supported by the expected easing of inflationary pressure. Consequently, the Institute for Advanced Studies expects GDP to grow by 0.4 % in 2023 and 1.2 % in 2024, respectively. After 8.5 % in the current year, inflation is expected to fall to 6.7 % and 3.5 %, respectively, in the coming two years. Despite the unfavorable economic situation, the unemployment rate should remain low at around 6.5 % in the next two years. According to the institute’s recommendations, structural reforms are essential to secure the sustainability of public finances.

About the economic forecast at IHS