Austria's economic outlook remains subdued following two consecutive years of recession. We now project economic growth of 0.4% in real terms this year amid elevated economic risks, including from international trade flows. We estimate Austria's budget deficit in 2024 will be about 4% of GDP, which is above our previous expectations. Despite an ambitious budgetary consolidation program, we do not anticipate deficits declining below 3% of GDP before 2026. Furthermore, the political outlook is uncertain and we believe any new government will face the challenging task of consolidating the budget without impairing economic growth. We therefore revised our outlook on Austria to stable from positive and affirmed our 'AA+/A-1+' ratings. On Feb. 14, 2025, S&P Global Ratings revised its outlook
