The economy clouds: slump in consumer sentiment

Austria’s economic growth threatens to cool significantly. According to the UniCredit Bank Austria economic indicator, growth is 4.4 percent this year and will drop to 1.5 percent next year. The good news: according to the economists, the labor market should remain stable – with an unemployment rate of 6.3 percent this year and 6.2 percent next year. In 2021 the value was still eight percent, in 2020 it was 9.9 percent and in the year before the Corona crisis it was 7.4 percent.

“Despite the slowdown in growth dynamics next year, employment will probably increase somewhat faster than the labor supply and therefore allow a slight reduction in the unemployment rate on average for the year,” explains economist Walter Pudschedl.

After the “strong growth in the first half of the year” of an average of 6.5 percent compared to the previous year, the domestic economy is “likely to be on the verge of stagnation” in the next few months, according to the economic report.

The strongest influence on the weakening of the overall result of the economic indicator in July came from the renewed sharp decline in domestic consumer sentiment.

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