Expectations of Austria’s 3 -year economy to shrink

2025/03/12 2:43:54 PM

1 minute read

Vienna on March 12 / WAM / The Austrian bank “Rivies” expected a weak performance of the Austria economy this year with its shrinkage by 0.7%, and its continued decline for the third year in a row since the Corona epidemic spread.

In this regard, the bank was based on the expected negative effects of the government austerity package declared to reform the budget deficit of 6.3 billion euros, equivalent to 1.3% of the gross domestic product, the continuation of the worsening industrial recession and the decline in Austria exports, and the impact of the potential American customs tariffs, which can incur the Austria economy of at least 0.5% of the GDP growth in the year The current.

Matthias Raith, chief economist at Riviesen Bank, expected Austria about its third year of economic decline, and highlighted the role of declining private consumption, which he considered one of the biggest disappointments of Austria’s economy last year. The economist questioned the possibility of a recovery of private consumption, and said that the saving of consumers extended to 2025.

The latest official figures issued by the Austrian Statistics Authority revealed that the economic outcome of the economic product was 1.2% in the past year 2024, after a decrease of 1% in 2023, noting that the economic output recorded a decrease of 0.4% in the last quarter of 2024 compared to the third quarter of the same year.

Marcus Martabor, Austria Finance Minister, expected the recession and the registration of negative economic growth this year.