The Austrian Institute of Economic Research (WIFO) said on Thursday that it expects the country’s economy to stagnate next year amid the ongoing energy crisis and the global economic downturn.
Austria’s gross domestic product (GDP) is projected to grow by only 0.3 percent in 2023, WIFO said in a report published on Thursday.
The institute said that Austria’s economy is expected to “decline noticeably” this winter as “persistently high energy prices, strong price dynamics and uncertainty about future developments are depressing sentiment.”
Although Austria’s economic outlook is expected to pick up from the spring of 2023 as uncertainty recedes and the energy crisis gradually eases, the country will fail to register significant economic growth next year, according to WIFO.
The institute expects Austria’s GDP to grow by 4.7 percent in 2022, driven by the country’s strong economic performance in the first half of the year. With the projected stagnation in 2023, the country’s economy is expected to return to significant growth of 1.8 percent in 2024.
Last month, WIFO said that the lingering energy crisis will weigh on Austria’s economy in the medium term, causing the country’s GDP to grow by an annual average of only 1 percent from 2023 to 2027.