The growth prospects for the domestic economy are deteriorating slightly: in its economic forecast today for 2023, the European Commission predicts growth of 0.4 percent for the Austrian economy.
In the winter forecast, the value was still 0.5 percent. Things should go uphill in 2024: Domestic growth should then reach 1.6 percent. Inflation remains high at 7.1 percent and is not expected to fall to 3.8 percent until 2024.
Better prognosis for entire EU
Things are looking better for the EU as a whole: Here the growth prospects for the current year have been corrected to 1.0 percent (0.8 percent in the interim winter forecast). In 2024, EU-wide growth is expected to reach 1.7 percent. In the euro area, gross domestic product (GDP) is expected to increase by 1.1 or 1.6 percent.
Inflation remains higher than last expected: The EU Commission expects 5.8 percent in the euro zone and 6.7 percent in the EU in 2023. An relaxation of 2.8 or 3.1 percent is not expected until 2024 – due to the uncertain global situation, however, this forecast is also subject to great uncertainty.
