Fiscal Consolidation Hampered by Sluggish GDP Growth

In Austria, the public sector is expected to make substantial savings over the next few years, the impact of which cannot yet been foreseen. The starting position for fiscal consolidation is difficult, especially as Austria's economic output contracted again by almost 1 percent in 2024 and will grow only hesitantly over the forecast period (2025 +0.6 percent, 2026 +1.2 percent). The unemployment rate will rise to 7.4 percent in 2025 and fall slightly to 7 percent in 2026.