The EU committee sees no rosy prospects for the Austrian economy this year. According to the current prediction in 2025, the gross domestic product (BBP) will shrink the third year in a row. Austria is the only country where the EU predicts a decrease in business this year.
Inflation in Austria remains well above the EU average at 2.9 percent and the target value of 2 percent. The deficit will also considerably exceed the permissible value of 3.0 percent by 4.4 percent of the economic output.
The current EU prediction for Austria is much worse than autumn prediction in November in all essential indicators. At that time, the EU committee still took economic growth of 1.0 percent and an inflation percentage of 2.1 percent.
Graphics: Austria 2025 The only EU country with a GDP decline
The shortage must be 3.7 percent in 2025. After all, the prediction for the unemployment rate remained unchanged at 5.3 percent.
Salvage -Investments, Stagnating Consumption, High Energy Costs
Austria was already the bottom of the EU in 2024 with an economic decrease by 1.2 percent. The triggers fell investments and stagnant consumption, writes the EU committee. High energy prices and rapidly rising production costs would have suffered the competitiveness of the industry. That will also burden the export.
After all, the EU committee expects economic growth of 1.0 percent for 2026. Inflation must also be back to the target value of the EU by 2.1 percent. Nevertheless, the growth remained below the average of the EU countries and inflation above. According to the prediction, the shortage of Austria will also be 4.2 percent in 2026 above the Maastricht limit and above the EU average of 3.4 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.
