Forecast of the Austrian Economy 2025–2029

Following a prolonged recession, the Austrian economy is likely to return to a modest growth trajectory in the current year. For the forecast period from 2025 to 2029, IHS expects real GDP to increase at an average annual rate of 0.9 %.

Domestic demand and exports are expected to pick up somewhat, but the existing structural issues in Austria, and the difficult, uncertain international environment, will likely dampen the growth pace. The inflation rate is expected to average at 2.3 % during the forecast period. Starting from 7.5 % in the current year, the unemployment rate is expected to decline to 6.2 % by 2029. According to IHS estimates, the budget deficit will fall to 3.2 % of GDP by the end of the forecast period. More ambitious structural reforms and an economic policy geared towards increasing potential growth would be necessary to significantly and sustainably reduce the deficit below the Maastricht limit of 3.0 %.

IHS economic forecast

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