Vienna – The Austrian National Bank (OeNB) announced on Friday that it has adjusted its economic outlook for the coming years. While the bank reduced its 2026 gross domestic product (GDP) growth estimate to 0.5%, down 0.1 percentage points from its June forecast, it raised the 2027 projection to 1.3%, up from 1.1%.

Why the change?

In its statement, the OeNB said the second half of 2026 shows a more positive picture despite ongoing challenges such as the war in the Middle East and a summer drought. “Global trade grew more strongly than expected, which should also benefit the Austrian export sector,” the bank noted. It also highlighted an improving order‑book situation and better sentiment in the domestic manufacturing sector, factors it expects to have their greatest impact next year.

Inflation outlook

Alongside the growth revisions, the central bank trimmed its inflation forecast for the Harmonised Index of Consumer Prices (HICP). It now expects inflation to run at 3.0% in 2026, down from 3.2%, and 2.3% in 2027, down from 2.4%.

Implications for Austria

These adjustments suggest a modest but steady recovery for Austria’s economy. The upward revision for 2027 reflects confidence that stronger external demand and a healthier manufacturing sector will drive growth. Lower inflation expectations also point to a more stable price environment, which could benefit consumers and businesses alike.

The OeNB’s outlook will inform monetary‑policy decisions and provide guidance for investors, exporters, and policymakers as they navigate the evolving economic landscape.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.