WIFO – Economic Outlook for 2025 and 2026

Austria is in its third year of recession.

The economic development of Austria since the beginning of 2024 has been less favorable than expected. The industry is facing difficulties, but an improvement in the economic situation in the EU is expected from mid-2025. The construction sector has begun to recover, and a slight increase in household consumption is anticipated. Inflation will start to decline after a significant rise at the beginning of 2025. The labor market remains relatively stable, but the unemployment rate is expected to continue rising in 2025. Unpredictable changes in international economic policy complicate forecasting.