Austria Economic Outlook
Stable and diversified economy:
Austria boasts a highly developed, export-oriented economy with strong industrial, service, and tourism sectors. The country benefits from its strategic location at the heart of Europe, serving as a key trade and logistics hub between Western and Eastern Europe. With a well-educated workforce and high levels of innovation, Austria is home to strong industrial firms in machinery, automotive parts, and pharmaceuticals, while Vienna serves as a financial center for the region.
Manufacturing and exports:Austria’s industrial sector is integral to its economy, with leading firms in engineering, chemicals, and vehicle manufacturing. The country is deeply embedded in European supply chains, particularly as a key supplier to Germany. Austria also benefits from a strong renewable energy sector, with hydropower contributing significantly to its energy mix. However, recent global trade disruptions and high energy prices have presented challenges for Austria’s export-driven industries.
Economic challenges:Austria faces several economic headwinds, including inflationary pressures and labor shortages, particularly in the skilled trades and healthcare sectors. Rising housing costs and an aging population also present structural challenges. Additionally, Austria’s close economic ties to Germany—its largest trading partner—mean that any slowdown in the German economy has a direct impact on Austrian growth.
Austria's economic projections:Despite near-term pressures from high inflation and slower European growth, Austria's economy is expected to remain resilient due to its strong industrial base, robust services sector, and continued investment in green technologies. The government’s focus on digitalization, sustainability, and workforce development should help drive long-term competitiveness. However, demographic pressures and dependency on the broader European economic cycle remain long-term concerns.
Austria's Macroeconomic Analysis:
Nominal GDP of USD 512 billion in 2023.
Nominal GDP of USD 521 billion in 2024.
Nominal GDP of USD 521 billion in 2024.
GDP per capita of USD 56,922 compared to the global average of USD 10,589.
GDP per capita of USD 57,084 compared to the global average of USD 10,589.
GDP per capita of USD 56,194 compared to the global average of USD 10,589.
Average real GDP growth of 1.1% over the last decade.
Average real GDP growth of 1.2% over the last decade.
Average real GDP growth of 1.1% over the last decade.
Sector Analysis
In 2022, services accounted for 62.3% of overall GDP, manufacturing 15.7%, other industrial activity 20.7%, and agriculture 1.3%. Looking at GDP by expenditure, private consumption accounted for 51.8% of GDP in 2023, government consumption 20.3%, fixed investment 25.3%, and net exports 2.6%.International trade
In 2023, manufactured products made up 79.3% of total merchandise exports, mineral fuels 3.6%, food 8.0%, ores and metals 3.0% and agricultural raw materials 1.3%, with other categories accounting for 4.8% of the total. In the same period, manufactured products made up 74.6% of total merchandise imports, mineral fuels 9.0%, food 8.2%, ores and metals 4.1% and agricultural raw materials 1.6%, with other goods accounting for 2.5% of the total. Total exports were worth USD 213.50 billion in 2024, while total imports were USD 212 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 1.2% in the decade to 2024. To read more about GDP growth in Austria, go to our dedicated page.
Fiscal policy
Austria's fiscal deficit averaged 2.3% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 5.6% in the decade to 2024. For more information on Austria's unemployment click here.
Inflation
Inflation averaged 3.0% in the decade to 2024. Go to our Austria inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Austria monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Austria
A second estimate confirmed that Austria’s economy eked out modest growth in the first quarter, expanding 0.1% quarter on quarter on a seasonally adjusted basis (preliminary estimate: +0.2% qoq s.a.; Q4 2024: 0.0% qoq s.a.). The improvement was driven by a rebound in net trade and public spending, and signals that economic growth is returning, but remains weak. In Q2, our panelists expect sequential GDP growth to have hovered around Q1’s result. ECB rate cuts should offer support, while continued headwinds include U.S. protectionism, above-target inflation and fiscal consolidation. In other news, on 6 June, Fitch Ratings downgraded Austria’s credit rating to 'AA' from 'AA+'—for the first time in the country’s history—citing a worsened fiscal and macroeconomic outlook, and pointing to weakening competitiveness and higher unit labor costs as medium-term risks.Austria Economic Forecasts
Projections out to 2034.49 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 22 expert analysts.
Want to get insight on the economic outlook for Austria in the coming years? FocusEconomics collects projections out to 2034 on 49 economic indicators for Austria from a panel of 22 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Austria economy. To download a sample report on the Austria's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.