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Austria Gradually Emerges from Recession. Economic Outlook for 2025 and 2026

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  • Stefan Schiman-Vukan
  • Stefan Ederer

Abstract

Austria's economy is recovering over the projection period from a recession that, according to the revised National Accounts, proved comparably severe to Germany's. The rebound is driven by private consumption, while foreign trade in goods continues to contract for the time being. Residential construction is picking up earlier than equipment investment, thanks to falling interest rates. Moderate wage settlements are expected to curb real-wage growth in 2026 and improve corporate profitability. Inflation will decline during the forecasting period, and the unemployment rate will reach a plateau.

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  • Stefan Schiman-Vukan & Stefan Ederer, 2025. "Austria Gradually Emerges from Recession. Economic Outlook for 2025 and 2026," WIFO Reports on Austria, WIFO, issue 16, October.
    • Handle: RePEc:wfo:repoau:y:2025:i:16
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