Austria´s economy makes an improved start to the new year
“The UniCredit Bank Austria Business Indicator rose to minus 0.7 points in December, reaching its highest level since mid-2022. The Austrian economy is thus starting the new year under much more favourable conditions than in 2025. However, in view of the continued subdued economic momentum, only cautious optimism is appropriate for the coming months,” says UniCredit Bank Austria Chief Economist Stefan Bruckbauer, adding: “Although economic sentiment has improved in all economic sectors except construction and sentiment in the services sector even rose above the long-term average at the end of the year, the high level of geopolitical uncertainty, the aggressive US economic policy and home-made challenges due to the high cost dynamics as well as the tight budgetary room for manoeuvre limit the prospects for the Austrian economy.”
- The UniCredit Bank Austria Business Indicator rose to minus 0.7 points in December, the highest value since mid-2022
- Economic sentiment improved in all economic sectors - with the exception of construction - at the turn of the year
- The revised upward trend up to the third quarter and the continuing economic upturn at the end of the year suggest economic growth of at least 0.5 per cent for 2025
- A moderate improvement in domestic demand and a more stable export economy will enable GDP growth of 1.0 per cent in 2026 and 1.5 per cent in 2027
- Turnaround on the labour market: after an average of 7.4% in 2025, the unemployment rate will fall to 7.3% in 2026 and to at least 7.2% in 2027
- Inflation will not reach the ECB's target range until 2027. At an average of 2.4 per cent, inflation is likely to be noticeably higher than in the eurozone again in 2026
UniCredit Bank Austria Business Indicator (PDF)
UniCredit Bank Austria Business Indicator – Computation method (PDF)
as of January, 2026
About UniCredit Bank Austria Business Indicator
The UniCredit Bank Austria Business Indicator provides an overview of the current economic situation in Austria.
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