After the strong first half of the year 2022, the economic activity in Austria has now slowed significantly. The war in Ukraine and the trend of rising energy prices continue and Europe is especially affected. Some of Austria’s business sector have a very high export share and must compete internationally, take e.g. the manufacturing sector with over 60% export share. The Austrian economy is now right on the brink of recession. The latest economic outlook for Austria published by BankAustria projects the Austrian economy to stagnate in 2023 following an economic growth rate of 5% in 2022. The inflation rate is set to remain in double digits unit spring 2023. The unemployment rate is likely to average 6.4% in 2022 and 2023.
Austrian and European Economy on Brink of Recession
High inflation, energy prices and weak global economic development challenge Austria’s economy
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