Austria's economy to stagnate in 2025, institutes forecast
June 26 (Reuters) - Austria's economy is expected to largely stagnate in 2025, impacted by a global trade war and high inflation, before returning to growth in 2026, two leading economic institutes said on Thursday.
"The Austrian economy is currently experiencing the longest period of weakness in the post-war era," the WIFO institute said, pointing to an ongoing recession in the industrial sector.
"In 2026, however, all sectors should contribute to the recovery," Christian Glocker, one of the authors of the current WIFO forecast, said.
The WIFO expects gross domestic product to stagnate in 2025 before growing by 1.2% in 2026, while the IHS expects GDP to grow by 0.1% in 2025 and 1.0% in 2026.
The WIFO expects inflation to come in at 2.9% in 2025, before slowing to 2.2% in 2026.
The HIS sees inflation at 2.9% for 2025 and 1.9% for 2026.
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