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

Runaway inflation was curbed by the end of 2023. The current account closed with a surplus, largely because of a decline in imports due to shrinking consumption, a drop in investment and lower import prices. GDP declined last year and there will be no spectacular recovery of economic growth in 2024 either. A chronic deficit in the general government balance necessitates painful measures, which in turn will put a brake on the pace of economic growth. Inflation continues to be of concern, while the current account will likely remain balanced or in surplus over the forecast horizon.