The UniCredit Bank Austria Business Indicator provides an overview of the current economic situation in Austria.
Signs of slow bottoming out in the Austrian economy
- UniCredit Bank Austria Business Indicator rises to minus 3.7 points in October, signaling end to decline but no turnaround yet
- Austrian economy expected to emerge from recession towards end of 2023, but GDP forecast down to minus 0.5% for year as a whole
- Real wage increases boosting consumption to offer hopes of recovery in 2024, but not without hindrance by restrictive monetary policy
- Economic slowdown fueling unemployment: average unemployment rate expected to be at least 6.4% in 2023/24
- Inflation expected to fall from average of 7.8% in 2023 to 3.6% in 2024, placing it above eurozone level for 16th consecutive year
- No further interest rate hikes expected in eurozone. Significant drop in inflation making cycle of interest rate cuts increasingly likely from mid-2024 onwards
as of November, 2023