Economic forecast 2025: Austria's growth remains below expectations!

Economic forecast 2025: Austria's growth remains below expectations!

The Economic Research Institute (Wifo) has published alarming news about Austria's economic future. According to the latest forecasts, the country will only be able to expect average, inflation-adjusted growth of 1 percent annually in the coming years. Economists had previously optimistically assumed 1.3 percent. In particular, the planned austerity measures of the expected upcoming FPÖ/ÖVP government, which are not yet taken into account in the current analysis, could further slow down growth as they would weaken overall economic demand krone.at reported.

Meager growth of just 0.6 percent is forecast for 2025, followed by 1.2 percent in 2026. However, the unemployment rate appears to be on the upswing, falling from 7.4 percent this year to 6.2 percent by 2029 due to demographic changes. Nevertheless, the budget balance is expected to average minus 4.2 percent of gross domestic product (GDP) over the next five years, while the public debt ratio is expected to rise to 89.2 percent of GDP.

Global economic forecast shows mixed signals

sueddeutsche.de.

This leaves Austrians and many other nations facing a mixed economic reality: while global growth promises some light on the horizon, the domestic economy looks bleaker, with strong challenges for the government and citizens.