AT: WIFO and IHS expect recession

WIFO and IHS presented their GDP forecasts for 2025 and 2026 today. Both institutes pointed out that Austria is in the longest recessionary phase since the Second World War. They do not expect the economy to brighten until the second half of 2025. For the years 2025 and 2026, the research institutes expect growth rates of -0.3% and +1.2% (WIFO) and -0.2% and +1.1% (IHS). We are forecasting weak growth of +0.2 percent for 2025 and moderate GDP growth of +1.0 percent for 2026.