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Second Year of Recession in Austria. The Austrian Economy in 2024

Author

Listed:
  • Josef Baumgartner
  • Jürgen Bierbaumer
  • Sandra Bilek-Steindl
  • Benjamin Bittschi

    (WIFO)

  • Christian Glocker

    (WIFO)

  • Margit Schratzenstaller-Altzinger

Abstract

The Austrian economy experienced its second consecutive year of recession in 2024. In addition to the decline in industrial activity, construction and some service sectors also weakened. The budget deficit increased to 4.7 percent of GDP due to the economic downturn and one-off measures. Despite an increase in gross real income, consumer demand from private households was sluggish. After two years of very high inflation, it slowed to an annual average of 2.9 percent in 2024.

Suggested Citation

  • Josef Baumgartner & Jürgen Bierbaumer & Sandra Bilek-Steindl & Benjamin Bittschi & Christian Glocker & Margit Schratzenstaller-Altzinger, 2025. "Second Year of Recession in Austria. The Austrian Economy in 2024," WIFO Reports on Austria, WIFO, issue 7, May.
    • Handle: RePEc:wfo:repoau:y:2025:i:7
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    File URL: https://www.wifo.ac.at/?p=426256
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    References listed on IDEAS

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    1. Erwan Gautier & Cristina Conflitti & Riemer P. Faber & Brian Fabo & Ludmila Fadejeva & Valentin Jouvanceau & Jan-Oliver Menz & Teresa Messner & Pavlos Petroulas & Pau Roldan-Blanco & Fabio Rumler & Se, 2024. "New Facts on Consumer Price Rigidity in the Euro Area," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(4), pages 386-431, October.
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    Keywords

    Economic development in Austria;

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