Vienna: The Austrian National Bank has adjusted its real GDP growth forecast, predicting that Austria's economy will expand by 0.5% for the year 2026. This is a slight decline from the previous forecast of 0.6% made in June.
According to Emirates News Agency, data from Statistics Austria indicated a 0.1% decrease in GDP during the second quarter compared to the first quarter. Economic experts from the National Bank have attributed this reduction to a drought wave and insufficient rainfall throughout the current year, which they estimate have shaved off 0.1% from economic growth.
Looking ahead, experts anticipate a rebound in GDP growth, forecasting a rise of 1.3% in 2027 and a subsequent increase of 1.2% in 2028. Additionally, the bank has updated its inflation forecast, projecting an inflation rate of 3.0% for 2026, a slight drop from the previous estimate of 3.2%.
In the coming years, the inflation rate is expected to decrease to 2.3% in 2027 and further to 2.2% in 2028, indicating a stabilizing economic outlook for Austria.