It looks bad with the Austrian economy: in 2025 she was able to reduce the third year in a row. Raiffeisen research predicts that the Austrian economy will decrease by almost one percent. This is a minus of 2400 euros per Austrian.
Already in 2024 it looked bad in Austria: the Alpine Republic was the soil of Europe in economic growth. According to the analysts of Raiffeisen Research, things are going further, because an improvement “is not in sight in the short term”. They expect the Austrian economy to shrink this year by 0.7 percent would be the third year of the recession since the start of Corona Pandemic in 2025.
Here you can see the prediction of the Raiffeisen research in detail.
Other institutions expect at least mini growth
With the reserved prospects, the Bankhuis is not alone, but other experts expect a small plus. As reported in the mid -January, the Economic Research Institute (WIFO) still recorded economic growth in Austria of 0.6 percent. The Institute for Higher Studies (IHS) expects an increase of 0.7 percent.
2025 is the third “lost year”
Raiffeiessen research currently sees no vote in the case of industry or consumers. According to the senior economist Matthias Reith, Austria even goes to the third “lost year”. Private consumption is one of the major economic disappointments in 2024.
Because if income increases with consumers, they don’t spend it. Instead, it ends up in the Piggy Bank. “A noticeable revitalization of private consumption is therefore doubtful. The ‘Consumer Strike’ can go into the extension in 2025, “concludes the Raiffeisen -economist.
The government package comes at the wrong time
But not only private households influence the economy, the government also conducts research into Raiffeisen. If necessary, the announced savings package from the new federal government is necessary, from an economic perspective it comes at the wrong time, says Reith. “The economy is on the demolition strip and actually needs pretext, instead you are in the way in the near future. The structural problems would of course not be solved by a start -up aid, the economy would have been attracted with a handbrake, “said Reith.
The American customs policy can be expensive
A look at the United States also takes care lines for the experts. The American market has been an important support in recent years. Because the Austrian export to the US was partially able to compensate for the fact that less was exported to other countries. However, if US President Donald Trump introduces even more rates, this can be expensive for Austria: Punnel rates can cost Austria at least 0.5 percentage points of growth points this year, according to the economists of Raiffeisen research.
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.
