17.01.2025

Competitive Disadvantages Slow Down Growth in the Austrian Economy

Update of the Medium-term Forecast 2025 to 2029

Trade conflicts, the weakness in Europe and structural disadvantages are slowing down the growth of the Austrian economy. However, supported by a moderate improvement in the international economy and stronger domestic private consumption, the Austrian economy will slowly recover from the recession in 2023-24. For 2025-2029, WIFO estimates average annual real GDP growth of +1 percent (Ø 2010-2019 +1.6 percent p.a.).

Over the entire forecast period, the Austrian economy will grow by 0.2 percentage points less than the euro area, with the latter lagging behind the USA by almost 1 percentage point per year.