Austria Set to Slip Into Recession on Interest Rate Pain
- GDP seen contracting by 0.8% in 2023, rebounding 1.2% in 2024
- Central bank tightening is putting a brake on the economy
Pedestrians near the Sisi Museum, centre, in Vienna, Austria.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Austria’s economy will contract this year due to the fallout from the European Central Bank’s interest-rate increases, according to the country’s Wifo research institute.
Gross domestic product will likely contract 0.8% in 2023, before rebounding to 1.2% growth next year, Wifo said in a a report featuring forecasts that form the basis of Austria’s 2024 budget preparations.