Austria’s economy shows signs of recovery as new year begins

VIENNA, 3rd January, 2026 (WAM) — Austria’s labour market is showing signs of a gradual recovery as the country emerges from a period of recession, supported by a 0.5 percent growth in Gross Domestic Product (GDP) last year.

Estimates from the Austrian National Bank (OeNB) suggest a decline in unemployment figures by the coming spring compared to the previous year.

Martin Kocher, Governor of the Austrian National Bank, stated that the number of job seekers and participants in training and rehabilitation programme reached 434,572 at the end of December. Kocher anticipated a decrease in unemployment as companies move toward increased hiring, driven by a strengthening economic rebound. He noted that indicators of an economic recovery have become increasingly evident.

Inflation in Austria is also expected to decline to approximately 2.4 percent during 2026, gradually approaching the target level of 2 percent forecast for 2027. This downward trend is expected to bring Austria’s inflation rate back in line with the European Union average.