Economic Recovery from the Second Half of 2023

The international economic downturn, which unfolded in the second half of 2022 and has also affected the Austrian economy, will continue to dampen GDP growth in the first half of 2023. Around the middle of the year, the economy is forecasted to regain momentum, both in the euro area and in Austria. For the year as a whole, WIFO expects weak real GDP growth of a mere 0.3 percent. In 2024 it is projected to accelerate to 1.8 percent. Due to the significant easing of prices on the energy markets, business and household sentiment has brightened somewhat. However, domestic tariffs for household energy and thus infla-tion will abate with some delay.