The Wifo research institute and the Institute for Higher Studies (IHS) have released new economic forecasts for Austria. Wifo projects growth of 0.9 percent in 2026 and 1.3 percent in 2027, while the IHS expects 0.8 percent and 1.0 percent growth respectively.
Key drivers include a 2.3 percent rise in real exports for 2026 and the first industrial value-added increase since 2022. However, inflation has risen above three percent due to a war in Iran, and the public sector's contribution to growth is currently decreasing.
While metal industry wages will rise by 1.9 percent following a 2025 settlement, overall real wages are forecast to fall by 0.9 percent in 2026. Unit labor costs will drop by 0.6 percent that year, and construction activity is not expected to rise until 2027.