WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

Growth in 2022 was 3.9%. This was better than expected, thanks to a rise in private consumption and gross capital formation. However, the continuing high inflation and increasing interest rates are likely to drag growth in 2023 down to 1.7%. The formation of governments after the October 2022 elections is not yet quite complete, but the shape of most of the structures is clear and reveals a slight move away from nationalist parties. The country gained EU candidate status in December 2022, even though the conditions required had not been met. This could provide a fillip to the country’s progress in the coming period.