Economic Report Vienna

In 2025, the Austrian economy recorded modest growth of 0.4 percent in real gross value added, marking the end of the longest recessionary period in the country's post-war history. Vienna outperformed the national average with growth of 0.8 percent, although momentum weakened noticeably in the second half of the year. Economic expansion was once again primarily driven by the public sector, while business services and construction acted as a drag. Despite record overnight stays, tourism contributed only marginally to overall growth. The Viennese labour market proved more resilient than the national average, supported by public services, transport, and tourism. The outlook for 2026 is shaped by geopolitical uncertainties and energy price developments. Under the main scenario, a moderate recovery is expected, with real gross value added projected to grow by 1.2 percent and employment by 0.9 percent in Vienna. However, alternative scenarios point to a range of outcomes, depending on the evolution of energy prices. Irrespective of short-term cyclical developments, Vienna continues to make notable progress in ecological transformation, as reflected in a comparatively low and declining energy consumption per employee.