Austria's economy awakened: minimal upswing after the doldrums!
Austria's economy awakened: minimal upswing after the doldrums!
Austria overcome the economic doldrums at the beginning of 2025 after the country suffered from a recession for 2.5 years. Forecasts indicate a minimal growth of gross domestic product (GDP) by 0.2 percent, such as 5min. The Austrian National Bank (OENB) sees signs of overcoming the valley sole, and in particular industry shows positive developments.
However, there are still stresses. High savings quotas and weak trust in the economy mean that private consumption remains at a low level. The new consolidation measures of the federal government, such as tax increases and the elimination of the climate monus, also slow down economic recovery. A slight increase in unemployment is forecast for 2025, although the labor market remains stable despite the recession, since many companies keep their employees.
inflation and budget deficit
Inflation remains 3.0 percent in Austria, especially due to increasing prices for energy and services. BASF emphasizes that the general economic framework in Europe is characterized by demographic changes and climate-political challenges. For 2026, inflation is expected to 1.8 percent, followed by a possible increase to 2.1 percent in 2027.
The budget deficit remains with an expected minus of 4.2 percent of GDP for 2025 above the Maastricht limit of 3 percent. Improvement of the balance is forecast for 2026; However, a deterioration for 2027 is assumed without additional measures. The economic development of Austria depends heavily on the international environment, especially with regard to possible further US import tariffs and geopolitical tensions.
global economic forecasts
The global GDP growth forecast for 2025 is 2.6 percent, according to BASF, which corresponds to the growth of 2024. In advanced economies, growth of 1.5 percent is expected, while emerging countries could have higher growth of around 4 percent. The EU, on the other hand, continues to fight with subdued growth forecasts of 1.2 percent for 2025, which represents an increase compared to 0.9 percent in 2024
Especially the economic indicators in Germany indicate weak growth of only 0.3 percent, despite an increased purchasing power. Low growth is expected in Italy and France. In contrast, Eastern European EU countries show a growth forecast of 2.5 percent. For the United States, a slowdown of economic growth from 2.8 percent (2024) is predicted to 2.0 percent (2025).
These special circumstances are also shown in reporting on economic indicators, such as those provided by a wide variety of institutes. According to DIHK , such indicators are decisive for the analysis of economic events in Germany, Europe and worldwide.
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| Ort | Österreich |
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