Prices continue to rise in Austria: inflation for May is expected to be 3.0 percent. Price drivers are still services. According to the OECD, the relaxation of the economy is not in sight. It expects the economy to reduce the third year in a row.
According to the rapid estimate of the Austria statistics on Tuesday, inflation in May is slightly lower than in April (3.1 percent). The prices for services, food, tobacco and alcohol rose more than inflation.
Inflation must continue: the organization for economic cooperation and development (OECD) expects inflation (HVPI) to be three percent in 2025 – that is higher than 2024. In December the OECD was still a significant decrease in inflation.
The inflation percentage eventually moved at about the same level:
OECD: Economy is shrinking 2025
However, the business predictions of the OECD are also due to inflation. Now they are also part of the list of institutions that see the owner -economy shrinking for the third year in a row. In 2025, GDP will fall by 0.3 percent, the prediction published on Tuesday. In December, the OECD predicted the growth of 1.1 percent.
The numbers of the OECD economic prospects are at the same level as that of the other prediction institutions who have already updated their predictions. EU committee, IMF and WiFo also expect that this year a decrease in cases of 0.3 percent, IHS and OENB will be slightly less pessimistic. Before 2026, all institutions now see growth between 1.0 and 1.2 percent.
Trump’s customs war weakens the world economy
According to the forecast, the world economy will only grow 2.9 percent next year. One reason for this is the customs war set by US President Donald Trump. The weaker economic points of sale are particularly visible in North America and some Asian economies, especially China.
Prediction: US economic growth above the cut
The OECD countries can therefore only generate behavioral growth this year with 1.4 percent. The United States with a plus 1.6 percent are above average, the eurozone by 1.0 percent lower. For Germany, the OECD is a bit more optimistic than for Austria and expects an economic plus of 0.4 percent and 1.2 percent 2025 this year. China, which is not an OECD member, will come to an underneath increase of 4.7 percent for its standards, which will continue to 4.3 percent in 2026 in 2026.
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.
