According to a current analysis of the Economic Research Institute (WIFO), the Austrian economy is still under pressure. A renewed weakening of the economy is “not unlikely”, the experts warn.
The reason for this is a “renewed downward trend of some lead indicators and the uncertainty of the high economic policy,” writes De Wifo in a current analysis. “The high uncertainty will burden the confidence of consumers and will continue to slow the internal economic dynamics,” said Wifo economist Christian Glocker.
It is unlikely that the industrial economy will improve, it will come from lead indicators. The economic assessments also remained pessimistic in the construction sector. Consumer confidence fell considerably again in April.
After 2.5 years of the first spark of hope
There was a small spark of hope in the first quarter of the Gross Domestic Product (GDP). According to the WiFo Rapid estimate, this year the domestic economic output has grown somewhat this year. Compared to the previous quarter, a real increase in GDP was 0.2 percent.
The plus in the first quarter of 2025 marked a first turn after the economic output had stagnated or shrunk for about two and a half years. In comparison with the previous year, a GDP decrease of 0.75 percent (Season and working day adjusted) resulted in the 1st quarter of the WiFo estimate published on 30 April.
The WiFo cannot currently report a positive news for inflation and the labor market: after the producer prices in March after a long time, “for the first time” increased “for the first time, the increase” reduces “the chance of sustainable weakening of inflation”. The weak economy charges the labor market and increases unemployment and vacancies.
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.
