Austria's economy in the fall: Trump's tariffs threaten!

Austria's economy in the fall: Trump's tariffs threaten!

The economic situation in Austria and the euro area remains tense, as the current economic report of the WIFO shows. The upswing is not in sight and the new US tariffs could further deteriorate the already difficult view. Wifo boss Gabriel Felbermayr described the planned tariffs of 25 percent on aluminum and steel imports as "unsightly but not devastating" for the economies. The concerns about tariffs dampen the expectations in industry and how leadersnet.at reports that an impending confrontation with the United States could also add the economy.

Stagnation and weak flow indicators

In the fourth quarter of 2024, economic output stagnated in Austria, while the demand for consumption and investment only increased slightly. The export continued to fall and the industry fought with production declines. The experts warn that rapid recovery is unlikely because the weak lead indicators do not support this. While the US economy is both constantly growing, the WiFo expects another weakness in the euro zone and thus also in Austria, such as The mirror reported.

Inflation in Austria is increasing to 3.3 percent at the beginning of 2025 and unemployment increases. The number of unemployed rose both compared to the previous year and compared to the previous month, while the number decreased. The current situation urgently requires decisions to avoid a further downward trend, but the prospects remain cloudy.