Economic forecasts by WIFO and IHS improved again
The economic forecasts published today for 2025 and 2026 show a further slight recovery in the Austrian economy. WIFO is forecasting slight economic growth of +0.3% in real terms for 2025. This is the second time in a row (after the revision from -0.3% to 0.0% in June 2025) that the forecasts have been revised upwards. Economic growth of 1.1% in real terms and a decline in the unemployment rate and inflation rate are expected for 2026.
"According to the new forecasts, the domestic economy is continuing its cautious recovery. The upturn in consumer demand is contributing to this, as is the slight increase in value added in industry and the construction sector. The recovery in the economy and employment is also supporting the reorganisation of the budget. Given the heavy legacy of a budget deficit that is far too high, the Federal Government does not have the additional financial leeway for extensive expansionary measures. However, targeted accents in labour market policy and investment promotion are helping to support the economy. In addition, the Federal Government is endeavouring to ensure stability and provide confidence in times of economic uncertainty through constructive cooperation, gradual reduction of the budget deficit and the provision of targeted impetus for economic dynamism and social security. Austria is still one of the economically and socially strongest countries in the world. Who, if not us, should succeed in solving the pressing economic problems?" said Finance Minister Markus Marterbauer in an initial opinion.
State Secretary of Finance Barbara Eibinger-Miedl explains: "The new economic forecasts show that the Austrian economic engine is slowly getting going again. This development also confirms the Federal Government's course, which was outlined by Federal Chancellor Christian Stocker with his 2-1-0 formula: We are focusing on consistent budget consolidation, a realistic plan to combat inflation and targeted measures to provide formal discharge for entrepreneurs. Especially the doubling of the investment allowance is a central building block to make our location more competitive again and to support the upswing."
"The figures show a clear upward trend - the economy is regaining momentum. The Federal Government has set itself a clear goal: to restructure, reform and modernise. Thanks to targeted reforms - for example in the pension system - and focussed measures for entrepreneurs in this country, we have been able to initiate a turnaround. The rising domestic economy due to falling interest rates and increasing purchasing power are also having a positive effect on employment and creating new jobs in the medium term. Despite the difficult years, the labour market remains more robust than expected and unemployment will shrink slightly in 2026. Inflation is falling and purchasing power is stabilising. The Federal Government has laid a foundation on which sustainable reforms can continue to be built," said State Secretary Sepp Schellhorn.