EU Forecast Sees GDP Decline This Year Only in Austria

Inflation remains at 2.9 percent above the EU average and the target value of 2 percent. The deficit will exceed the allowed value of 3.0 percent at 4.4 percent of economic output.

Less Favorable Than in the Autumn Forecast

The latest EU forecast for Austria is significantly less favorable in all key points than the autumn forecast in November. At that time, the EU Commission had still predicted economic growth of 1.0 percent and an inflation rate of 2.1 percent. The deficit was expected to be 3.7 percent in 2025. At least the forecast for the unemployment rate remains stable at 5.3 percent.

EU Forecast: Austrian Economy Expected to Grow Again in 2026

Austria was already at the bottom of the EU in 2024 with an economic decline of 1.2 percent. The EU Commission writes that the triggers were declining investments and stagnant consumption. High energy prices and sharply rising production costs had affected the competitiveness of the industry. This will also burden exports.

At least the EU Commission expects economic growth of 1.0 percent for 2026. Inflation is also expected to practically return to the EU target value at 2.1 percent. Nevertheless, growth would remain below the average of EU countries and inflation above it. According to the forecast, Austria's deficit will also remain above the Maastricht limit and above the EU average of 3.4 percent at 4.2 percent in 2026.

(APA/Red)

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