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2025-09-12 16:05:05
Austrian National Bank Raises Inflation Forecast, Maintains 0.3% GDP Growth Forecast for This Year] ⑴ The Austrian National Bank released its latest economic forecast, confirming that the country will narrowly avoid a third consecutive year of recession in 2025. ⑵ The central bank maintained its June forecast for 0.3% GDP growth this year, but lowered its growth forecast for next year from 0.9% to 0.8%. ⑶ The central bank significantly raised its inflation forecast, projecting 3.5% for the High Inflation Rate (HICP) this year, up from 3.0% in its June forecast. ⑷ The inflation forecast for next year was raised by 0.6 percentage points to 2.4%. ⑸ The central bank's statement stated that "the main reason for the rebound in inflation is the sharp rise in energy prices at the beginning of the year," which is related to the expiration of family subsidies implemented following the Russia-Ukraine conflict. ⑹ Inflation in the services sector is expected to remain high, driven primarily by wage growth. ⑺ Austria's High Inflation Rate (HICP) inflation reached 4.1% year-on-year in August, the highest in Western Europe. ⑻ Only Estonia, Latvia, Croatia, and Slovakia have higher inflation rates in the Eurozone than Austria.
