Headwinds Keep Austria's Economy Close to Stagnation in 2024

The economic weakness in the EU is particularly affecting Germany and Austria, which are specialised in capital goods production. The high interest rates are weighing on investment demand as well as demand for construction services. Economic activity in both the euro area and Austria should pick up again around mid-2024 when the ECB is expected to ease its monetary policy. For the year as a whole, WIFO expects real GDP growth to remain weak at just 0.2 percent. It will accelerate to 1.8 percent in 2025.