Industry Drives the Recovery, Energy Prices Dampen Purchasing Power

The Austrian economy is on a tentative path to recovery and is unlikely to be derailed by the renewed surge in energy prices. WIFO forecasts GDP growth of 0.9 percent for 2026. In 2027, it is expected to reach 1.3 percent. Over the forecast period, industry will replace the public sector as the main driver of growth, while private consumer demand will remain weak due to falling real wages and persistently high uncertainty.