Impact of the Iran War on the Economy Already Visible

The sharp rise in energy prices resulting from the Iran war is driving up consumer prices worldwide. Consumer confidence has declined in many places. Before the war began, the global economy had still been growing strongly. In Austria, economic output rose moderately in the first quarter of 2026. Business sentiment deteriorated due to the war, whilst inflation rose significantly as a result of the energy price shock. The momentum in employment was not sufficient to prevent a rise in unemployment.