AT: Stagnation expected in 2025

Today, both the Austrian Institute of Economic Research and the Institute for Advanced Studies presented their GDP forecasts for 2025 and 2026. WIFO expects growth of 0.0% this year, followed by +1.2% in 2026, while the IHS is forecasting 0.1% and +1.0%. Both institutes pointed out that Austria has probably overcome the longest recessionary phase since the Second World War. However, the forecast is subject to considerable uncertainty. We forecast GDP growth of -0.2% for 2025. For 2026, we expect GDP growth of +0.4%.