Austria’s economy expected to face stagnation in 2023

The Austrian Institute of Economic Research (WIFO) said that it expects the country’s economy to stagnate next year amid the ongoing energy crisis and the global economic downturn.

Austria’s gross domestic product (GDP) is projected to grow by only 0.3 per cent in 2023, Xinhua news agency quoted the WIFO as saying in a report.

The institute said that Austria’s economy is expected to “decline noticeably” this winter as “persistently high energy prices, strong price dynamics and uncertainty about future developments are depressing sentiment”.

Although Austria’s economic outlook is expected to pick up from the spring of 2023 as uncertainty recedes and the energy crisis gradually eases, the country will fail to register significant economic growth next year, according to WIFO.

The institute expects Austria’s GDP to grow by 4.7 per cent in 2022, driven by the country’s strong economic performance in the first half of the year.

With the projected stagnation in 2023, the country’s economy is expected to return to significant growth of 1.8 per cent in 2024.

Last month, WIFO said that the lingering energy crisis will weigh on Austria’s economy in the medium term, causing the country’s GDP to grow by an annual average of only 1 per cent from 2023 to 2027.

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