Austria is standing before the third year of recession: the dark forecast 2025!

Austria is standing before the third year of recession: the dark forecast 2025!

The Organization for Economic Cooperation and Development (OECD) has published its latest forecasts for Austria and is concerned about the economic development of the country. For 2025, a decline in gross domestic product (GDP) is forecast by 0.3 percent, which represents a serious revision compared to the December forecast, which expected growth of 1.1 percent. For 2026, on the other hand, business recovery is promised with a growth of 1.0 percent, as [Vol.at] (https://www.vol.at/oecdset-oesterreich-2025-vor-dreittem-rezessions year/9449645) reports.

This gloomy assessment is shared by other institutions such as the EU Commission, the International Monetary Fund (IMF) and the WIFO, which also expect a decrease of 0.3 percent for 2025. However, a certain level of optimism comes from the IHS and the OENB, which have something more positive views. WiFo boss Gabriel Felbermayr expresses hope of economic relaxation, but also sees unresolved problems that cause uncertainty.

global and European context

The OECD emphasizes that the global economy will only grow by 2.9 percent in 2025 and 2026. This is strongly influenced by geopolitical tensions, including the customs war under US President Trump. For the OECD countries, growth of 1.4 percent is forecast for 2025, while the United States has to make do with 1.6 percent and the euro zone with 1.0 percent. Germany also faces challenges with a forecast growth of only 0.4 percent in 2025.

China will probably achieve growth of 4.7 percent, but the country must cope with challenges such as high debts and a weakening real estate sector. In Europe, the inflation rate is a big topic that is estimated in Austria to 3 percent for 2025. This is above the level of 2024 and is accompanied by the effects of high inflation and global interest increases that burden the economic outlook, reported the Tagesschau.

Austrian economic forecasts

The Austrian new debt is expected at 4.4 percent in 2025 and 4.2 percent in 2026, in the event of a public debt according to the Maastricht of 84.7 percent in 2025 and 86.6 percent in 2026. A stable unemployment rate of 5.2 percent is also forecast. However, the increasing savings rate shows that citizens are increasingly dealing with their money, from 11.7 percent in 2024 to 12.3 percent in 2025 and 12.9 percent in 2026.

This development raises questions about future economic stability and forces both analysts and decision -makers to seek innovative approaches to boost growth. The global context, especially with regard to the challenges for low -income countries, shows that Austria does not act in isolation, but acts in a complex global network of economic stress. According to the analyzes of the World Bank, many countries have to carry out significant structural reforms in order to pass international competition.