2022 was not a good year for the purchasing power of the Austrians. The local economy was hit by the international economic downturn in the second half of the year. For 2022 as a whole, domestic economic researchers still expect strong GDP growth of 4.7 percent (Wifo) or 4.8 percent (IHS), but 2023 is likely to be a year of stagnation. From 2024, the economy is expected to pick up and inflation will fall.
In the coming year, economic output in Austria should only increase by 0.3 percent, according to Wifo estimates. The IHS expects GDP growth of 0.4 percent.
While economists see no sign of an end to the war in Ukraine weighing on European economies, they do expect a gradual easing of energy markets, which should dampen inflation and gradually improve sentiment as the economy picks up again.
In 2024, growth should accelerate to 1.8 percent (Wifo) or 1.2 percent (IHS).
8.5 percent inflation in 2022
groceries from flour to cola; electricity, gas, wood and pellets; hairdressing and other services; Industrial products: Nothing will become cheaper in 2023. But prices will not rise at the same rate everywhere. Energy costs will also be the driving force in the new year. After an increase of 40.5 percent from 2021 to 2022, another 18.5 percent price increase is expected in the energy sector in 2023. A price increase is also expected for food. Here again the reasons: the war in Ukraine and high energy costs.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
