Austria’s economy will grow even more strongly this year than expected in March. However, the joy is likely to be short-lived, as the economy will slow down in the second half of the year.
The growth prospects for 2023 are therefore now significantly worse than three months ago, write the economic research institutes WIFO and IHS in their June forecast presented today. Inflation, on the other hand, will be much higher than expected in March.
WIFO and IHS are now expecting GDP growth of 4.3/3.8 percent for this year, compared to 3.9/3.6 percent predicted in March. Things went particularly well in the first quarter. For 2023, the institutes reduced their forecasts to 1.6/1.4 percent and thus very significantly.
consumer prices rise
In March they had still expected growth of 2.0/2.3 percent. There is bad news when it comes to inflation: according to WIFO, consumer prices are likely to rise by 7.8 percent instead of 5.8 percent this year and according to IHS by 7.4 percent instead of 5.5 percent. In 2023, inflation will remain high at around five percent.