Subdued Economy with Regional Disparities

The Austrian economy continues to develop sluggishly, but with pronounced regional differences: Vorarlberg, Tyrol and Vienna recorded noticeable increases in value added in the first half of 2025, while most of the industry-intensive federal provinces continued to weaken. Nevertheless, there are signs of stabilisation in the manufacturing sector, while the expected recovery in the construction sector was interrupted in the second quarter of 2025.