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Austrian central bank expects country will barely avoid recession in 2025
Published by Global Banking & Finance Review®
Posted on June 6, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on June 6, 2025
1 min readLast updated: January 23, 2026
The Austrian Central Bank predicts a 0.2% GDP growth in 2025, narrowly avoiding a recession, despite potential impacts from US tariffs.
VIENNA (Reuters) -Austria's economy will grow slightly this year, avoiding what would be a third year of recession in a row, the Austrian National Bank said in its half-yearly economic forecast, predicting gross domestic product will rise by 0.2% this year.
Economic think-tanks including Wifo, which provides the government with forecasts the budget is based on, recently predicted the economy would contract again this year.
"We can announce today that we are expecting economic growth this year to be slightly positive," Governor Robert Holzmann said in a statement issued by the central bank on Friday.
"Economic development in Austria will remain fraught in 2025. At the start of the year, the economy hit its low point after a 2-1/2-year recession. However, the U.S. import tariffs and their effects will only start to be felt in the coming months," he added.
(Reporting by Francois MurphyEditing by Tomasz Janowski)
The Austrian National Bank expects the economy to grow slightly this year, avoiding a third consecutive year of recession.
Economic think-tanks, including Wifo, predicted that the economy would contract again this year.
The economic development in Austria will remain fraught in 2025, as the economy hit its low point after a 2-1/2-year recession.
The Governor of the Austrian National Bank is Robert Holzmann, who announced the positive growth expectation.
The U.S. import tariffs and their effects on the economy are among the external factors impacting Austria's economic outlook.
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