VIENNA, Nov. 7 (Xinhua) -- The Austrian Institute of Economic Research (WIFO) on Thursday projected Austria's gross domestic product (GDP) to grow by an average 1.25 percent annually from 2025 to 2029, about 0.2 percentage points lower than the medium-term forecast for the eurozone.
Austria's economy is "slowly recovering" from the recession in 2023 and 2024 thanks to "improvement in the international business cycle and stronger private domestic consumption," the institute said in its medium-term forecast for the Austrian economy.
Private consumption is predicted to increase by an average 1.5 percent annually from 2025 to 2029, and exports will grow by an average 2.5 percent annually over the period, according to a statement from the institute.
However, WIFO said that Austria's medium-term economic growth will be slower than that of other eurozone countries due to higher energy prices and labor costs in the central European country.
The institute added that structural problems in migrant integration, labor market participation and the education system will also slow down Austria's medium-term economic outlook.
Austria's GDP has contracted for six consecutive quarters, starting from the second quarter of 2023 to the third quarter of this year, according to a recent WIFO estimate.
