Positive indicators on the start of the Austria’s economy next year
Vienna on June 28 / WAM / recent economic expectations reported that Austria is on its way out of the longest economic weakness it witnessed, as the economy is expected to end two years of recession and achieve slight growth of 0.1% during the current year 2025.
In its summer report, the Institute of Advanced Studies “IHS” made a radical amendment of its previous estimates issued last March and expected a 0.2%contraction, which reflects an improvement in economic indicators.
In this context, the head of the institute, Holger Bonin, stated: Austria’s economy has reached its lowest levels, and signs of the beginning of recovery began to appear.
Expectations indicate that the frequency of growth will be stronger next year 2026, as the Institute of Economic Research “WIFO” predicts a more dynamic recovery of 1.2%, while the IHS Institute estimates it by 1%, and it is expected that growth will include all economic sectors except for the tourism sector, which may witness a decrease due to a high price level.
This upcoming recovery is due to several factors, most notably the improvement in the confidence of consumers, which is expected to support private spending to contribute an increase of about 0.7% in the country’s economy this year, and Austria’s economy also benefits from “positive signals” issued by Germany, its main commercial partner.
Despite this optimistic view, the report warned of “possible negative risks” that may affect the course of recovery, including the volatility of American customs tariffs, geopolitical tensions in the Middle East and the Russian -Ukrainian crisis.
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