Austrian institution lowers national economic growth forecast due to the war in Iran

Golden Ten Data, April 10 – Two major Austrian economic research institutes stated on Friday that the shock from the Iran war is threatening Austria's economic recovery in 2026. The Institute for Advanced Studies (IHS) has lowered its forecast for Austria's economic growth in 2026 to 0.5% and in 2027 to 0.8%, down from the previous 1.0% and 1.1%, citing soaring energy prices and increased uncertainty. The Austrian Institute of Economic Research (WIFO) also cut its GDP forecasts for the country, now expecting growth in 2026 to be between 0.2% and 1.1%, and in 2027 between 0.4% and 1.5%, compared to previous forecasts of 1.2% for 2026 and 1.4% for 2027. WIFO stated: "The current uncertain international environment is making forecasting difficult." WIFO expects Austria's inflation rate in 2026 to be between 2.5% and 4.1%, and in 2027 between 2.2% and 3.5%. IHS expects this year's inflation rate to be 2.9%, and 2.4% in 2027.