Government on alert: Budget hole could reach 12 billion euros!

Government on alert: Budget hole could reach 12 billion euros!

Österreich - Today at 10 a.m. WIFO and IHS present a new economic forecast that triggers concern in the government. The first assessment of the current economic Situation is characterized by a more pessimistic ramp, which in particular puts the political decision -makers under pressure. According to Oe24 threatens to climb the budget deficit at 12 billion euros. The government is faced with the challenge of avert an EU criminal proceedings, which is probably not to be done with the current savings package of 6.4 billion euros.

Finance Minister Markus Marterbauer from the SPÖ has focused on the agreed savings program and the double budget 2025/2026. He expects a budget deficit "well above the 3 percent limit" for 2025 and would like to prevent himself from going into a "vicious circle" of saving. These uncertainties contribute to the increasing nervousness within the government and among the citizens.

economic challenges

The National Bank (OENB) also drastically revised its growth forecast for 2025, and by 0.9 percentage points to minus 0.1 percent. At the same time, Bank Austria proclaims a mini-plus of economic output of 0.1 percent for 2023, whereas Raiffeisen Research forecast a decline in economic output by 0.7 percent.

The situation in the German economy reflects the uncertainties. According to the DIW Berlin the German economy stagnates for the third time in 2025. While a revitalization of economic output is expected by 1.1 percent for 2026, the current situation is characterized by steamed lust for buyers in consumers and a weak investment activity.

economic barometer and other forecasts

In the context of development, the DIW economy barometer is a helpful instrument. It is created on the basis of over 300 variables and offers a comprehensive overview of the economic situation. The index for February 2025 is 90.4 points, which represents an increase compared to January, but remains below the 100 points mark. This shows that the economic recovery is still fragile.

A review of the past few months shows that the economic barometer was 86.4 points in December 2024 and, as a result, improved in several steps, but is still far from stable conditions. The industry remains a problem child, and the buying mood of private households is only weak, which brakes the entire economic recovery.

A total of 0.2 percent is forecast for 2024, followed by a minimal growth of 0.2 percent in 2025 and 1.2 percent in 2026. These developments underline urgency to deal with the current challenges. Politics must now pull together to find sustainable solutions before a possible crisis meets the economy.