Austria Recession 2023 - 2025

Information according to WIFO (Austrian Institute for Economic Research):

The decline in industrial production in the euro area, which has been observed since the beginning of 2023, continues to affect Austria. Surveys among manufacturing companies do not yet point to a turnaround. The announced increase in tariffs of the USA on EU export goods is also weighing on sentiment. By contrast, construction and consumer demand are trending upwards. The inflation rate rose significantly at the beginning of 2025, but is forecasted to fall back in the course of the year. The labour market is proving relatively robust given the duration and severity of the recession, although unemployment will continue to rise in 2025. WIFO expects GDP to fall by 0.3 percent in 2025. The Austrian economy will pick up speed again in 2026 (+1.2 percent).

One important factor in the recession are rising energy costs:

Energy costs in Austria rose in 2023, stabilized somewhat in 2024, but experienced a significant increase from January 2025 onwards due to the expiration of the electricity price cap and increased levies (network charges, CO₂ price), especially for electricity, which once again became the main driver of inflation, even though gas and heating oil prices had partially stabilized. Switching providers and comparing offers remains advisable, as prices will remain high in 2025 and may rise further in the future.

Currently, an EU excessive deficit procedure is underway against Austria because the budget deficit for 2024 and 2025 exceeds the EU limits (3% of GDP) (4.7% and 4.5%, respectively), necessitating austerity and revenue-raising measures to avoid penalties.

• Reason: Austria's deficit was 4.7% in 2024 and is projected to remain at 4.5% in 2025, exceeding the 3% limit of the EU's Maastricht criteria.

• Objective: To develop a plan with the EU to reduce the deficit to below 3% of GDP in order to exit the procedure.

• Measures: Savings in expenditure (approximately two-thirds) and increased revenue (approximately one-third) to consolidate €6.4 billion (2025) and €8.7 billion (2026), respectively.

• Sanctions: Failure to comply could result in financial penalties amounting to 0.05% of GDP every six months.

Based on the facts mentioned above, company bankruptcies are on the rise. Figures are from Statistics Austria:

In 2023: 5338 cases. In 2024: 6545 cases. In 2025: 6857 cases.

Paradoxically, even during these years of recession, some large companies in Austria are still making very high net profits. Here are a few examples.

REWE Österreich net profit 2024: Euro 21.314.943,00 (prev. year 2023: Euro 18.257.000,00)

Interspar Österreich net profit 2024: Euro 119.487.324,00 (prev. year 2023: Euro 96.714.000,00)

OMV net profit 2024: Euro 2.024.000.000,00 ( prev. year 2023: Euro 1.917.000.000,00)

Verbund Österreich net profit: Euro 2.139.704.000,00 ( prev. year 2023: Euro 2.732.130.000,00)

Supermarkets such as REWE and Interspar justify rising prices with increasing energy costs, while energy companies like OMV and Verbund Austria still make millions of euros in profits. The Republic of Austria owns 51% of Verbund Austria. This stake is enshrined in the constitution.

At the end of 2025, Austrian Chancellor Dr. Christian Stocker (ÖVP) proudly announced a €500 million energy cost reduction package for 2026, financed by profits from state-owned companies like Verbund Austria. This "present" comes too late for thousands of businesses. Since 2020, all Austrian chancellors have been from the ÖVP. Why weren't rising energy costs, a significant factor in the economic crisis, reduced earlier?

Christian commandments, such as "Love your neighbor as yourself," have no place in today's economy.
It seems more like a commandment such as "Love yourself first and exploit others to that end."