The spring economic forecast published by the European Commission in Brussels on Wednesday continues to predict weak growth prospects for the EU, the Eurozone and Austria: the Republic is clearly lagging behind in comparison – and not just in terms of economic growth.
The EU economy is expected to grow by 1.0 percent this year and 1.6 percent in 2025. For the eurozone, the Commission expects 0.8 and 1.4 percent respectively. For Austria, a small increase of 0.3 percent is expected in 2024, before domestic economic output is expected to rise by 1.6 percent in 2025.
Annual inflation is expected to fall faster than initially expected: in countries with the single euro it is expected to fall further to 2.5 percent in 2024 and 2.1 percent in 2025, while inflation in the EU is expected to 2 will reach .7 percent. this year to 2.2 percent next year. The Austrian figure is still above average at 3.6 percent this year and 2.8 percent in 2025.
Unemployment stable
Unemployment remains fairly stable in all areas: 6.1 percent is expected for the EU this year, 6.0 percent next year, and 6.6 and 6.5 percent for the eurozone. Austria is below the average with 5.3 and 5.1 percent (according to Eurostat’s definition).
The Commission emphasizes that “after a broad stagnation in the economy in 2023, better-than-expected growth in early 2024 and the continued decline in inflation have increased the conditions for a gradual recovery in activity over the forecast period.”
This is mainly due to an increase in private consumption, as continued increases in real wages and employment result in higher disposable income.
Uncertainties will continue to exist
However, the ongoing Russian war of aggression against Ukraine, the conflict in the Middle East and other geopolitical tensions would increase uncertainties and downside risks, the committee warns in its report.
In addition, persistent inflation in the US could lead to delayed interest rate cuts, worsening global financial conditions. The risks associated with climate change also increasingly weighed on the forecasts.
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.
