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Modest Growth Replaces Recession. The Austrian Economy in 2025

Author

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

    (WIFO)

  • Christian Glocker

    (WIFO)

  • Margit Schratzenstaller

Abstract

Following two years of recession, Austria's economy grew modestly again in 2025 (+0.6 percent in real terms). While industrial growth gradually gathered pace, the construction sector experienced further losses in value added. The general government deficit stood at 4.2 percent of GDP. Weak growth in real incomes dampened consumer spending, and the savings rate fell sharply. Inflation rose significantly, particularly due to the expiry of the electricity price cap and increases in charges, averaging 3.6 percent for the year.

Suggested Citation

  • Josef Baumgartner & Jürgen Bierbaumer & Sandra Bilek-Steindl & Benjamin Bittschi & Christian Glocker & Margit Schratzenstaller, 2026. "Modest Growth Replaces Recession. The Austrian Economy in 2025," WIFO Reports on Austria, WIFO, issue 6, May.
    • Handle: RePEc:wfo:repoau:y:2026:i:6
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    File URL: https://www.wifo.ac.at/?p=448572
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    References listed on IDEAS

    as
    1. Michael Peneder & Benjamin Bittschi & Anna Burton & Angela Köppl & Thomas Url, 2025. "The WIFO Radar of Competitiveness for the Austrian Economy 2024," WIFO Reports on Austria, WIFO, issue 2, January.
    2. Anna Burton & Sabine Ehn-Fragner, 2023. "Tourism Regains Strength Despite Persistent Inflation," WIFO Reports on Austria, WIFO, issue 17, December.
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    1. Michael Peneder & Benjamin Bittschi & Anna Burton & Angela Köppl & Thomas Url, 2024. "The WIFO Radar of Competitiveness for the Austrian Economy 2023," WIFO Reports on Austria, WIFO, issue 2, January.
    2. Michael Peneder & Benjamin Bittschi & Anna Burton & Daniela Kletzan-Slamanig & Thomas Url, 2026. "The WIFO Radar of Competitiveness for the Austrian Economy 2025. Focus Topic: Price Trends in Tourism as a Competitive Factor," WIFO Reports on Austria, WIFO, issue 3, February.

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