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In the summer of 2025, the holiday euro will be worth around 8% more abroad than in Austria

  • Measured by purchasing power at home, you can get goods and services worth 108 euros for 100 euros on holiday abroad. 
  • Among the most popular holiday destinations, Hungary will receive the most in summer 2025, around 50 percent more than in Austria. In Portugal and Spain, too, the value of the holiday euro is significantly higher than in Austria at around 30 percent.
  • In Greece and Slovenia, you get around 20 percent more than in Austria. You can get around 10 percent more in Croatia and Italy. Holidaymakers receive similar amounts to Austria in Germany, France and Turkey, where they lost around 20 percent of their value.
  • Compared to the summer of 2024, the relative value of the holiday euro has changed only slightly, as price increases in some countries have been more pronounced than in Austria, which was only partially offset by exchange rate devaluations. The value of the holiday euro fell particularly sharply in Turkey
  • This year, thanks to the strong euro, the holiday euro is worth more than last year in Hungary, the USA and above all in Canada.
  • In the overseas destinations, the holiday euro was unable to increase in value despite the appreciation of the euro by around 3 percent, as in many countries the rise in inflation was stronger than in Austria, and in addition, the euro lost value against Asian currencies, so that it will be worth 3 percent less on average in Asia in 2025 than in the previous year.
  • The situation is different in South/Central America, where the holiday euro is likely to be worth around 7 percent more this year, for example 14 percent in Mexico and 9 percent in Brazil. In Australia and New Zealand, too, you will get almost 10 percent more this year compared to Austria than in 2024.
     

Analyse Holiday euro (PDF)

as of June 2025.

The regained purchasing power is not yet perceived

  • The losses in purchasing power of up to 10 percent due to the sharp rise in inflation in recent years have already been largely offset by wage increases up to the first quarter of 2025. 
  • However, different results in wage negotiations and different adjustment dates lead to differences in the development of the real purchasing power of employees depending on the sector.
  • Employees in energy supply, public administration and other economic services are already showing real increases in purchasing power. 
  • In the course of 2025, the increase in collective wages will ensure that, on average and in almost all main groups, real purchasing power of 2020 will be fully restored. 
  • The significantly higher perceived inflation measured on the basis of the mini- or micro shopping basket explains the high consumer restraint despite regained purchasing power. 
  • The regained purchasing power was already reflected in a real increase in disposable income and the savings ratio in 2024. A savings ratio at the level of the long-term average would have brought economic growth to Austria in 2024 via consumption. 
  • More aggressive consumption behavior is also crucial for an improvement in the Austrian economy in 2025 to avoid another year of GDP decline.

Analyse The regained purchasing power is not yet perceived (PDF)

as of April 2025.

Tariff shock: Regional impacts

  • On April 2, 2025, US President Trump announced the introduction of so-called "reciprocal" tariffs. There is the base rate of 10 percent, which applies to all U.S. trading partners. In addition, there is a country-specific import tariff, which is 10 percent for EU countries, for example. Overall, a minimum tariff rate of 20 percent will apply to imports from the EU for most goods in the future. On April 9, President Trump ordered that only the 10 percent flat rate for all countries except China would be applied for the next 90 days. The already fixed tariffs of 25 percent on steel and aluminum or motor vehicles will remain in place.
  • The USA is an important trading partner of Austria. In 2024, Austrian exports to the USA amounted to 16.2 billion euros, with machinery, automotive industry products and pharmaceutical goods being the main categories. This makes the United States the second most important export partner after Germany.
  • Imports from the USA to Austria amounted to 7.7 billion euros in the previous year, significantly below the export volume to the USA. This corresponds to an Austrian trade surplus of about 8.5 billion euros with the United States. The most important import goods are pharmaceutical products, motor vehicles and optical equipment.
  • Styria, Upper Austria and Vienna are responsible for more than two-thirds of Austrian exports to the USA. Burgenland has by far the lowest export volume. In the two industrial strongholds of Styria and Upper Austria, exports to the USA account for the highest share of regional economic output at 6.4 and 4.7 percent respectively.
  • Overall, we assume that the protectionist measures in the USA will push down domestic economic output by 0.25 percent, with Styria (-0.5 percent) and Upper Austria (-0.4 percent) feeling the effects the most.

Analyse Tariff shock from the USA (PDF)

as of April 2025.

Legal information

These publications do not constitute investment advice, investment recommendations, marketing communications, or financial analysis. In particular, they are not an offer or solicitation to buy or sell securities and do not constitute a solicitation to make such an offer. They are intended solely as initial information and are no substitute for advice based on the individual circumstances and knowledge of the investor.
It is an analysis based on publicly available economic data. Despite careful research and the use of reliable sources, no responsibility can be taken for completeness, correctness, timeliness and accuracy.

Any investment in securities involves risks. The value of the investment and the income from it may fluctuate suddenly and substantially and therefore cannot be guaranteed. There is a possibility that the investor will not get back the full amount invested, particularly if the investment is held for only a short time. In some circumstances, a total loss is also possible.

Possible (return) payments from the product may not protect investors against inflation risk. There can be no assurance, therefore, that the purchasing power of the capital invested will not be affected by a general increase in the prices of consumer goods. Figures and information on performance refer to the past and past performance is not a reliable indicator of future results.
Only in the context of an investment advisory service can UniCredit Bank Austria AG take into account the personal circumstances of the customer (investment objectives, experience and knowledge, risk appetite, financial circumstances and financial loss tolerance) and carry out a product-specific suitability test.

We would like to point out that the tax treatment depends on the personal or company circumstances of the investor and that the information on tax advantages is provided on the basis of the current legal situation, which may be subject to future changes and for which no information can be given as to whether they will be continued.

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