Unicredit Bank Austria sees Schwarz for the Austrian economy. The domestic economy is far from growth. Thanks to the aggressive customs policy of the US President Donald Trump, this stays throughout the year, according to economists.
“In all economic sectors, the mood deteriorated at the end of the first quarter,” says economist Stefan Bruckbauer of Bank-Austria. The mood in the tourism sector had the highest part of the decline, but it also looked bad in the construction sector.
The economic indicator calculated by Unicredit Bank Austria fell to minus 2.3 points in the previous month. The indicator has been in the negative area since 2022 and there is only economic growth above the zero line. “It is only for 2026 that a noticeable economic growth of 1.1 percent can be expected,” said economists Bruckbauer and Walter Pudschedl.
Experts expect the GDP decline
Thanks to the unpredictable customs policy of Trump, the experts consider a decrease in the gross domestic product (GDP) as probably before 2025. Given the escalation of commercial disputes with the US according to the Customs announcements by US President Donald Trump, there are many risks for Europe.
More unemployed
According to the experts, this will also be reflected on the labor market. This year an increase in the unemployment rate in Austria is expected from 7.3 to 7.6 percent. “With the current challenges, the willingness is to keep qualified, experienced employees in the companies in the case of underground,” says economist Walter Pudschedl.
Involves is expected
However, there is good news for those who want to take out a loan: analysts from Bank Austria expect further important interest rates from the European Central Bank in April, June and September, whereby the deposit rate must reach its low point at 1.75 percent.
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.
