Autumn Forecast of the Austrian Economy 2025–2026

Recession overcome, but inflation remains high

At the end of last year, Austria's economy emerged from recession and has been growing modestly ever since.

Due to structural weaknesses and external economic pressures, economic growth is likely to remain slower over the forecast period than in previous upturns. According to the IHS Autumn forecast, real GDP is expected to grow by 0.4 % this year and 0.9 % next year. CPI inflation is likely to be significantly higher than previously expected, at 3.5 % and 2.4 %, respectively. The unemployment rate is expected to rise from 7.0 % in the previous year to an annual average of 7.4 % in 2025. Next year, it is likely to fall only slightly to 7.3 %. IHS forecasts a budget deficit of 4.3 % and 4.1 % of GDP in 2025 and 2026, respectively.

IHS Economic Forecast