Vienna defies the crisis: the only federal state with economic growth!

Vienna defies the crisis: the only federal state with economic growth!

Wien, Österreich - Vienna shines again with positive economies. With a real economic growth of 0.4 percent, the capital is the only federal state in Austria that can currently have positive figures. It is all the more noteworthy that Tyrol and Salzburg with a minus of 0.5 percent or 0.7 percent do better than the Austrian average of -1.2 percent, such as the Kurier reported.

The greatest declines listed Upper Austria with -2.7 percent, followed by Carinthia with -2.4 percent. Robert Schwarz, economist at Unicredit Bank Austria, blames the international weakness in demand, which is particularly stressful for industry in these federal states.

Viennese strengths and investments

For Mayor Michael Ludwig (SPÖ), growth in Vienna is a reason for joy and confirmation of the political measures that were taken in cooperation with the NEOS. He emphasizes the social cohesion and the economic strength of the city. In order to secure this upward trend, there are large investments in digitization and artificial intelligence as well as promoting international company settlements.

A large data center is also intended to further strengthen Vienna business location. Tourism, which recorded an increase of over 9 percent with 154.3 million overnight stays last year, plays a crucial role here. Despite the increase, however, the value creations in this sector have decreased due to increased costs.

US tariffs and their effects

The situation of the economy is also influenced by external factors, especially by the US customs policy. Political uncertainties regarding customs strategies under President Donald Trump help to ensure that the Austrian economy is under pressure. The federal states of Upper Austria and Styria are particularly affected, which, together with over 7,000 endangered jobs, record a decline in economic output of more than 1 percent. Carinthia and Burgenland are least affected, such as wko reported.

The uncertainties in the international markets have increased significantly since Trump's office in January. International trade is suffering from the announced customs increases and the EU plans to increase the tariffs to US imports in response. In the medium term, this could burden the EU more than the USA itself.

forecasts and challenges

for 2025 it is forecast that Vienna and Burgenland each achieve the greatest growth with 0.4 percent, while Upper Austria and Carinthia will shrink. Despite the positive development in Vienna, unemployment rates in all federal states, the strongest in Upper Austria, Styria and Salzburg. These developments could increase, while the US economy faces challenges thanks to increasing inflation rates and possible recessions. Economists currently appreciate the likelihood of a recession in the United States to 60 percent, which could also put a strain on the Austrian economy.

Overall, Vienna shows that you can master the economic challenges with clever investments and a strong focus on digital development. The path seems rocky, but the Viennese draw from their strengths and rely on the future.