Austria's GDP to contract 0.6 pct in 2024: WIFO
Dec 21, 2024
Vienna (Austria), December 21: The Austrian Institute of Economic Research (WIFO) on Friday projected Austria's gross domestic product (GDP) to contract by 0.6 percent in real terms this year as recession and economic uncertainties grip the country.
"There are currently no signs of a turnaround," WIFO said in a statement. "Business sentiment remains predominantly pessimistic, although there are signs of a slight improvement outside the industrial sector."
The institute added that the expected rise in energy prices at the start of 2025, due to higher network charges, has further dampened consumer confidence and spending.
WIFO predicted a mere 0.6-percent growth for Austria's economy in 2025 and a 1.2-percent increase in 2026.
The institute also projected a rising trend for unemployment in Austria amid a sluggish economy. The country's unemployment rate, measured at 7 percent this year, is expected to increase to 7.4 percent in 2025 before falling back to 7 percent in 2026.
Regarding Austria's budget deficit, WIFO predicted the figure to rise above 4 percent of GDP next year without further measures, significantly surpassing the Maastricht criteria of 3 percent. However, the institute warned that the Austrian government's prospective fiscal consolidation measures in the coming years might dampen the country's GDP growth by 0.5 to 1 percentage points.
Austria's GDP has contracted for six quarters in a row since the second quarter of 2023, Statistics Austria said in early December.
Source: Xinhua News Agency
