Austria’s central bank lowered its 2026 economic growth forecast to 0.5% from 0.6% after weaker-than-expected performance in the first six months. It raised the 2027 projection to 1.3% from 1.1%, citing stronger global trade and improving order books and sentiment in domestic manufacturing, although the benefits are expected to be felt mainly next year. The OeNB also reduced its inflation forecast, measured by the Harmonised Index of Consumer Prices (HICP), to 3% in 2026 from 3.2% and to 2.3% in 2027 from 2.4%.