After months of contraction, Austria’s economy is gaining momentum
Austria’s economy has shown a notable recovery after a prolonged recession, prompting economic research institutes to raise their growth forecasts for the coming years.
According to projections by the Austrian Institute of Economic Research (WIFO) and the Institute for Advanced Studies (IHS), Austria’s gross domestic product is expected to grow by 0.5 percent in 2025, and by up to 1.2 percent in 2026.
For 2027, WIFO and IHS forecast economic growth of 1.4 and 1.1 percent, respectively.
Inflation is also expected to ease, falling from an annual average of 3.6 percent in 2025 to 2.5 percent in 2026, before declining further to 1.9 percent in 2027.
The economic recovery is expected to be accompanied by an improvement in labour market conditions, with the unemployment rate projected to fall from 7.4 percent in 2025 to 7.1 percent by 2027.
