Economic Boom Ahead: WIFO Predicts 1.2% GDP Growth for Austria in 2026
Economic forecaster WIFO anticipates Austria's GDP growth to reach 1.2% in 2026.
Get ready, Austria! After two dreary years of economic downturn, it's time to gear up as the Vienna-based WIFO Institute is foreshadowing a revival. Forget the stagnation in 2025; according to WIFO's forecast, Austria's economic output is going to soar by a whopping 1.2% in 2026. "As the global economy recovers, Austria's economic engine will regain its momentum, with both exports and domestic demand leading the charge," WIFO declared on Thursday.
In other words, we're sailing out of the economic slump that's been plaguing Austria since World War II. The worst might be behind us, though things are still touch-and-go, vulnerable to sudden setbacks. Excited? Don't be. Geopolitical risks and uncertainty about international trade policies could pose challenges for exports, our main economic advantage.
But fear not! Austrian businesses aren't going to let a little turbulence stand in their way. WIFO predicts a recovery in exports of goods and services in 2026, which will help boost the demand environment. On top of that, investment activity is expected to rebound next year, giving the economy a good push.
Consumers, too, are emerging from the shadows. WIFO forecasts a nice uptick in household consumption, with private spending power gaining strength. Add this to improved consumer confidence, and you've got a recipe for an economic upswing.
The manufacturing sector, however, has hit a rough patch lately, with a contraction in value-added for several years. But WIFO predicts a significant recovery in 2026, which will contribute positively to GDP growth.
The construction sector, eerily quiet for quite some time now, is on the mend, too. WIFO anticipates a slight growth in 2025, followed by a more robust expansion the following year. Looks like those cement mixers will be humming again soon!
The trade sector hasn't been the most dynamic recently, but WIFO forecasts a change is coming. They expect it to awaken from its slumber in 2026, aiding economic expansion.
In a nutshell, WIFO's prediction of 1.2% GDP growth in 2026 hinges on a recovery in export markets, strengthened investment, increased private consumption, a turnaround in the manufacturing and construction sectors, and improved trade performance. Here's to economic growth and the Austrian recovery!
[References][1] ntv.de[2] rts[5] Various data sources cited by WIFO Institute
The economic boom predicted for Austria in 2026 is contingent upon several factors, including a recovery in employment policies within various sectors, such as community policy, finance, and business. A boost in investment activity, increased private consumption, and a turnaround in manufacturing and construction sectors are also crucial to achieving the anticipated 1.2% GDP growth.
Austria's economic engine is expected to regain momentum, with both exports and domestic demand leading the charge in 2026. As the global economy recovers, it is essential that Austrian employment policies are strong and adaptable to potential geopolitical risks and uncertainty about international trade policies that could pose challenges for exports.
