After a recession in 2023, the Austrian National Bank (OeNB) sees only a slight recovery in the domestic economy this year. Growth is expected to be 0.3 percent and will be driven by the recovery of private consumption and exports.
In its March forecast, the OeNB expected growth of 0.5 percent for 2024. HICP inflation is expected to weaken significantly this year, falling to 3.4 percent after 7.7 percent in 2023.
The OeNB estimate falls between the latest gross domestic product (GDP) forecasts from the Austrian Institute for Economic Research (WIFO) and the Institute for Advanced Studies (IHS). In March they had predicted real growth of plus 0.2 and 0.5 percent respectively.
From the National Bank’s perspective, the economy is likely to recover somewhat this year, but only slowly. Rising real wages, which stimulate private consumption, and increasing exports should contribute to this. For the next two years, the OeNB expects GDP growth to accelerate to plus 1.8 percent (2025) and plus 1.5 percent (2026). She cites a significant increase in real consumption and an improvement in the foreign trade environment as supporting factors.
Harmonized inflation (HICP), measured according to European standards, is expected to return significantly in 2024, halving to 3.4 percent according to the OeNB forecast, after 7.7 percent in 2023.
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.
