{"id":426154,"date":"2025-05-16T11:37:48","date_gmt":"2025-05-16T09:37:48","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/426154\/"},"modified":"2025-05-16T11:37:48","modified_gmt":"2025-05-16T09:37:48","slug":"austria-is-in-its-third-year-of-recession-3","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/426154\/","title":{"rendered":"Austria is in its Third Year of Recession"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-426154","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"Economic Outlook for 2025 and 2026","text":"The decline in industrial production in the euro area, which has been observed since the beginning of 2023, continues to affect Austria. Surveys among manufacturing companies do not yet point to a turnaround. The announced increase in tariffs of the USA on EU export goods is also weighing on sentiment. By contrast, construction and consumer demand are expected to trend upwards. Inflation rose significantly at the beginning of 2025 but is forecasted to fall back in the course of the year. The labour market is proving relatively resilient given the duration and severity of the recession, although unemployment will continue to rise in 2025. WIFO expects GDP to fall by 0.3 percent in 2025. The Austrian economy will pick up momentum again in 2026 (+1.2 percent).","onlinedate":"2025-05-16 09:37:49","lang":"English","publication_series":"","publication_date":"20250516","publication_date_year":"","publication_date_full":true,"publication_num_pages":"16","keywords":"[\"Economic outlook\",\"forecast\"]","jelcodes":"[\"E32\",\"E66\"]","related_publications":"[\"f43f876f-e4b9-4ac0-93f3-002490f7e22a\"]","pdf":426157,"zip":null,"link":"","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"5","journal":"WIFO Reports on Austria","publisher":"","invisible":false,"external":false,"embargo_date":null,"types":[44424],"research_groups":[3500],"collaboration":"","persons":[3837,3567],"persons_data":"[{\"personId\":3837,\"personName\":\"Marcus Scheiblecker\",\"organisationNames\":[]},{\"personId\":3567,\"personName\":\"Stefan Ederer\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Scheiblecker, M.<\\\/span><span>, &amp; Ederer, S.<\\\/span> (2025). <span>Austria is in its Third Year of Recession: Economic Outlook for 2025 and 2026<\\\/span>. <span><em>WIFO Reports on Austria<\\\/em><\\\/span>, (5).<\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Scheiblecker M<\\\/span><span>, Ederer S<\\\/span>. <span class=\\\"title\\\"><span>Austria is in its Third Year of Recession: <span class=\\\"subtitle\\\">Economic Outlook for 2025 and 2026<\\\/span><\\\/span><\\\/span>. <span>WIFO Reports on Austria<\\\/span>. 2025 May 16;(5).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{c7d4eece6a144205a5b6bae2f2b39738,<\\\/div><div>  title    = \\\"Austria is in its Third Year of Recession: Economic Outlook for 2025 and 2026\\\",<\\\/div><div>  abstract = \\\"The decline in industrial production in the euro area, which has been observed since the beginning of 2023, continues to affect Austria. Surveys among manufacturing companies do not yet point to a turnaround. The announced increase in tariffs of the USA on EU export goods is also weighing on sentiment. By contrast, construction and consumer demand are expected to trend upwards. Inflation rose significantly at the beginning of 2025 but is forecasted to fall back in the course of the year. The labour market is proving relatively resilient given the duration and severity of the recession, although unemployment will continue to rise in 2025. WIFO expects GDP to fall by 0.3 percent in 2025. The Austrian economy will pick up momentum again in 2026 (+1.2 percent).\\\",<\\\/div><div>  keywords = \\\"Economic outlook, forecast\\\",<\\\/div><div>  author   = \\\"Marcus Scheiblecker and Stefan Ederer\\\",<\\\/div><div>  year     = \\\"2025\\\",<\\\/div><div>  month    = may,<\\\/div><div>  day      = \\\"16\\\",<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Reports on Austria\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Austria is in its Third Year of Recession<\\\/p><p>T2  - Economic Outlook for 2025 and 2026<\\\/p><p>AU  - Scheiblecker, Marcus<\\\/p><p>AU  - Ederer, Stefan<\\\/p><p>PY  - 2025\\\/5\\\/16<\\\/p><p>Y1  - 2025\\\/5\\\/16<\\\/p><p>N2  - The decline in industrial production in the euro area, which has been observed since the beginning of 2023, continues to affect Austria. Surveys among manufacturing companies do not yet point to a turnaround. The announced increase in tariffs of the USA on EU export goods is also weighing on sentiment. By contrast, construction and consumer demand are expected to trend upwards. Inflation rose significantly at the beginning of 2025 but is forecasted to fall back in the course of the year. The labour market is proving relatively resilient given the duration and severity of the recession, although unemployment will continue to rise in 2025. WIFO expects GDP to fall by 0.3 percent in 2025. The Austrian economy will pick up momentum again in 2026 (+1.2 percent).<\\\/p><p>AB  - The decline in industrial production in the euro area, which has been observed since the beginning of 2023, continues to affect Austria. Surveys among manufacturing companies do not yet point to a turnaround. The announced increase in tariffs of the USA on EU export goods is also weighing on sentiment. By contrast, construction and consumer demand are expected to trend upwards. Inflation rose significantly at the beginning of 2025 but is forecasted to fall back in the course of the year. The labour market is proving relatively resilient given the duration and severity of the recession, although unemployment will continue to rise in 2025. WIFO expects GDP to fall by 0.3 percent in 2025. The Austrian economy will pick up momentum again in 2026 (+1.2 percent).<\\\/p><p>KW  - Economic outlook<\\\/p><p>KW  - forecast<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Reports on Austria<\\\/p><p>JF  - WIFO Reports on Austria<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[\"Czaloun Astrid\",\"Steiner Martha\"]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.3 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Austria is in its Third Year of Recession - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/426154\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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