Austrian National Bank lowers 2025 economic growth forecast

VIENNA, 25th March, 2025 (WAM) — The Austrian National Bank (OeNB) has revised its economic growth forecast for 2025, projecting a decline of 0.1 percent in the country’s gross domestic product. This marks a significant adjustment from the bank’s earlier estimate, issued three months ago, which predicted a growth rate of 0.8 percent.

In its latest outlook on Austria’s economic development, the OeNB now expects a moderate economic recovery, with growth of 1.2 percent in both 2026 and 2027. This is a downward revision from the 1.6 percent growth forecast made in December for the same period.

The report indicated that while Austria’s economy is expected to stabilise in 2025, a significant recovery is unlikely before the second half of the year. Inflation is projected to remain at 2.9 percent, while the budget deficit is expected to rise to 3.8 percent of GDP for the year.