The Austrian Institute of Economic Research (WIFO) said on Friday that it expects the country’s economy to stagnate this year amid high interest rates and the European economic downturn.
According to WIFO’s latest predictions, Austria’s GDP is expected to grow by only 0.2 percent in 2024, far below the institute’s projection of a 0.9-percent growth in December.
“The economic weakness in the European Union (EU) is particularly affecting Germany and Austria, which are specialized in capital goods production,” WIFO said in a statement. “The high interest rates are weighing on investment demand as well as demand for construction services.”—Xinhua
