Heterogeneous Regional Economy with Ongoing Industrial Recession

The Austrian economy has been in a persistently difficult phase. Gross domestic product is expected to fall by 1.2% in 2024 and by a further 0.3% in 2025 according to the current forecast. Manufacturing in particular suffered under the current conditions. In the fourth quarter of 2024, there were clear regional differences in economic development. The number of overnight stays in tourism developed particularly dynamically in the federal states of Vienna and most of the western federal states. Regions with a stronger focus on manufacturing experienced greater challenges. The difficult economic environment was also reflected in the labor market. In the fourth quarter of 2024, dependent employment in Austria largely stagnated at +0.2%, with large regional differences ranging from +1.2% in Vienna to -0.5% in Upper Austria and Carinthia. Accordingly, unemployment figures in Austria rose by 9.3%, with Upper Austria recording the strongest increase at +16.1% and Carinthia the lowest at +2.9%.