The UniCredit Bank Austria Business Indicator provides an overview of the current economic situation in Austria.

Austrian economy defies the economic odds 

  • UniCredit Bank Austria Business Indicator increased to minus 2.5 points in December 
  • Mood in services sector improved at end of 2022; downturn in industrial sector continued
  • Risk of recession has receded, but difficult global environment and new financing conditions mean recovery will only be moderate and from spring onwards 
  • Stagnation expected in 2023; hard-won recovery expected in 2024 with economic growth of 1.2%
  • Labor market continues to buck trend of economic slowdown: Unemployment rate expected to rise only slightly in 2023 to 6.4% before falling to 6.3% in 2024 
  • Energy price fall dampening inflation but rates set to fall only slowly in 2023/24 due to second-round effects and wage dynamics
  • Further tightening of monetary policy expected until mid-2023; trend set to change throughout 2024
     

as of 16 January 2023