Research Detail
| 2023/06/19 / Erste Group Research |
GDP growth stagnates, inflation starts declining The recovery of 2021-22 turned into a slowdown in 2H22, which continued in the first months of 2023 due to high inflation and persisting global uncertainty. In 1Q23, the Austrian economy stagnated compared with the previous quarter, with growth momentum flattening in almost all sectors of the economy, except tourism. We expect sluggish economic development to continue in the second quarter of 2023. In May Austrian HICP inflation posted a long-awaited decline to 8.8%, however still remained substantially above the Eurozone average of 6.1%. We expect Austrian inflation to gradually decline over the course of the year while still remaining elevated. At its June meeting, the ECB Governing Council again raised key interest rates by 25 basis points (bp). ECB president Lagarde made it clear that a next rate hike was very likely in July. |
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General information
| Author | Erste Group Research |
| Date | 2023/06/19 |
| Language |  |
| Product name | CEE Country Macro Outlook |
| Topic in focus | FX, Macro/ Fixed income |
| Economy in focus | Austria |
| Currency in focus | Euro |
| Sector in focus | - |
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