Austria faces third year of recession in 2025, moderate growth expected in 2026


  • World
  • Friday, 28 Mar 2025

VIENNA, March 27 (Xinhua) -- Austria is set to experience its third consecutive year of recession in 2025, with economic recovery anticipated in 2026, according to forecasts released on Thursday.

The Austrian Institute of Economic Research (WIFO) predicts a 0.3 percent decline in the country's gross domestic product (GDP) in 2025, followed by a 1.2 percent increase in 2026. WIFO attributes the downturn to the ongoing decline in industrial production across the euro area and the impact of impending U.S. tariff hikes on EU exports.

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