As someone working day-to-day in Austria, I’ve felt firsthand how the economic climate has shifted over the past couple of years.
The official estimate for Austria’s GDP stood at $513 billion at the end of 2023, though some argue this figure underestimates the real picture by nearly 9%. High inflation and a global industrial slowdown have certainly made life more complicated, both for businesses and for workers like me.
The summer of 2023 was tough — GDP shrank, consumer spending stagnated, and industry took a hit. It wasn’t easy to watch colleagues and companies tighten their belts. Yet, what gives me hope is that economic institutes like IHS are already predicting a rebound: a modest contraction in 2023, followed by growth of 0.8% in 2024 and 1.5% in 2025.
For those of us on the ground, this matters. Rising real incomes are expected to drive stronger consumer demand, and that means more opportunities, more projects, and more stability in our workplaces. Yes, the industrial sector’s recovery will be slower, but services are set to grow, and construction will eventually bounce back after its low point in 2024.
Foreign trade is also expected to improve from early 2024, which is encouraging for anyone connected to international business. While the labour market has been mixed — with unemployment temporarily rising due to displaced persons from Ukraine — the resilience of Austria’s workforce is something I see every day. People adapt, retrain, and keep moving forward. By 2025, employment is projected to rise again, with unemployment dropping to 6%.
Inflation, which has been a constant worry for households, is forecast to ease to 4% in 2024 and around 3% in 2025. Lower energy costs and extended electricity price caps will make a real difference for families and workers alike. On top of that, Austria’s public finances are improving: the government deficit is expected to shrink to 2% of GDP by 2025, and public debt will fall to 73.5% of economic output.
From where I stand, these numbers aren’t just abstract statistics — they represent a gradual return to stability.
The past few years have tested us, but the outlook for 2024 and 2025 shows that Austria is on track for recovery. I feel encouraged knowing that inflation is easing, incomes are rising, and opportunities are slowly expanding again.
Austria may have faced contraction and uncertainty, but the resilience of its people and the promise of better days ahead remind me that there truly is light at the end of the tunnel.
If you notice any inaccuracies in my writing, please get in touch with me. I will be happy to correct it.