Business debacle: Companies in Austria buckle the belt closer!

Business debacle: Companies in Austria buckle the belt closer!

The economic situation of Austrian companies remains tense. According to the current Austrian Business Check 2025, published by KSV1870, only 43% of companies rate their business situation as "good" or "very good". This represents a decline of 7 percentage points compared to March 2024. The main cause of this negative mood is the high cost level that is burdened by many companies.

It is particularly worrying that only 19% of companies expect an improvement in their situation for 2025. While 41% of companies record sales increases, the yield situation often remains unchanged. In the trade, on the other hand, 40% of companies reported a decline in sales, which illustrates the precarious situation in this sector.

regional differences and industry analyzes

The analysis shows significant differences between the different industries and regions. In the service sector, 49% of companies give positive feedback, while only 29% of this opinion are in the trade. Industry is also affected, with a decline in positive ratings by 24 percentage points in the year to only 32%.

The regional differences are also striking. Vorarlberg is the most critical region with only 20% of the positively rated companies. Over 50% of the companies suffer from a lack of personnel, especially in the areas of gastronomy, construction and healthcare. These challenges prevent companies from exploiting their full potential.

economic outlook and future investments

For the forecasts for the year 2025, an economic recovery is expected. According to the Austrian National Bank (OENB), the Austrian economy should grow by 1.8%, supported by an improved foreign economic environment and strong growth of real consumption. The inflation rate is expected to continue to decrease, from 3.4% in 2024 to 2.7% in 2025.

However, there are also serious challenges: 32% of companies expect a deterioration in the economic situation. Additional consolidation measures are necessary to reduce public budget deficits over 3% of GDP. At the same time, 80% of the companies have recognized cost -discipline as the top priority, with 13% implementing formal austerity programs.

Overall, the current status report represents a sobering reality in which the Austrian companies are forced to adapt to another difficult year. Despite the hope of growing real wages and positive exports, the uncertainty in the economic situation remains, such as the analyzes of leadersnet.at and oenb.at