March 27 (Reuters) - Austria's Economy Is Expected to Contract Slightly in 2025 Before Returning to Growth In 2026, Two Leading Economic Institutes Said on Thursday, Dragged by the Country's Budget Consolidation Plan and The Risks of Global Trade Wars.
"Surveys Among Industrial Companies Have Not yet Indicated Any Reversal of the Trend," the Wifo Institute Said, With the Announcement of Increased Tariffs by the U.S. on Goods From the European Union Acting as a Further Dampener.
The Austrian Economy Should Overcome Its Longest Recession in Decades From Mid-2025, Said Wifo Economist Marcus Scheiblecker. "the Intensity of the Recovery Will Depend Mainly on the Uncertain International Framework Conditions," He Added.
The Wifo Expects Gross Domestic Product to Decline by 0.3% In 2025, After a 1.2% Drop in 2024, and to Grow by 1.2% in 2026.
The IHS Institute Expects GDP to Slide by 0.2% in 2025 Before Rising by 1.1% in 2026.
Wifo Expects Inflation to Come in at 2.7% In 2025, Before Slowing to 2.1% By 2026.
IHS Sees Inflation at 2.9% for 2025 and 2.0% for 2026.
(Reporting by Linda Pasquini, Editing by Rachel More)
((Linda.pasquini@Thomsonreuters.com))
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