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At least the economic downturn is also bringing with it slightly less sharp price increases, according to the summer forecast published on Wednesday. Specifically, Wifo is now expecting stagnation (0.0 percent growth) for 2024, while IHS is expecting a minimal increase of 0.3 percent. Inflation will remain above three percent this year.
This is the fourth time in a row that the institutes have withdrawn their growth forecasts for 2024. In March 2023, they were still confident that growth of 1.8 (Wifo) to 1.4 percent (IHS) would emerge this year. In June, both then assumed 1.4 percent, and in October 2023 only 1.2/0.9 percent. At the end of 2023, the forecasts fell to 0.9/0.8 percent, and in March to 0.2/0.5 percent.
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Austria’s economy has been weakening for two years now, notes the Wifo. This is due in particular to problems in industry and the construction industry. In 2025, industry should get a boost again thanks to impulses from abroad; the Wifo expects economic growth of 1.5 percent next year. The IHS, on the other hand, is confident that the upturn will begin in the second half of 2024. This year, however, that will only be enough for 0.3 percent growth; in 2025, GDP is expected to increase by 1.6 percent.
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Source: Nachrichten
