Economic outlook improves for Austria as German manufacturing orders hit record high

The Oesterreichische Nationalbank (OeNB) has released an interim economic forecast for Austria covering 2026 to 2028. Despite regional conflicts in the Middle East and summer droughts, the outlook for the second half of 2026 has improved. The OeNB projects GDP growth of 0.5% for 2026, 1.3% for 2027, and 1.2% for 2028. Inflation is expected to be 3% in 2026, decreasing to 2.3% in 2027 and 2.2% in 2028.

In Germany, the Federal Statistical Office (Destatis) reported that real orders in the manufacturing sector rose by 1.5% in July 2026 compared to June. This represents a 10.9% increase compared to July 2025, reaching a new all-time high. This growth was largely driven by the miscellaneous vehicle construction sector, including aircraft, ships, and military vehicles, which saw a 3.9% monthly increase. While mechanical engineering also saw growth, the automotive industry experienced a 1.7% decline in orders.