More Consumers in Austria Turning to Credit as Borrowing Grows
Young people aged 14 to 29 are the keenest to spend, with 51% planning major purchases over the next 12 months.
People in Austria are increasingly turning to credit to fund major purchases, with 36% planning a significant purchase in the next 12 months, according to a survey by Erste Bank.
The study, based on a sample of 1,000 people, found that young people aged 14 to 29 are the most willing to spend, with 51% planning big-ticket purchases – a sharp rise of 12 percentage points on last year.
Borrowing on the Rise as Interest Rates Fall
Falling loan rates are driving the trend, with the average planned loan amount now at around €153,000 – up from €105,000 a year ago.
Meanwhile, the appetite for investment has waned. The average planned investment sum has fallen from €5,600 last year to €4,000, according to the bank’s figures. However, the proportion of people planning to invest remains steady at 83%, rising to 94% among those aged 14 to 29.
Savings accounts remain the most popular option, with 61% of savers using them, while 35% opt for building society savings schemes.
Weak Confidence in Economic Recovery
Despite the rise in borrowing, optimism about Austria’s economic prospects remains low. Just 25% of respondents believe the economy will recover. However, Erste Bank’s CEO, Gerda Holzinger-Burgstaller, remains upbeat. “The lowest point seems to be behind us, and we expect a return to modest GDP growth this year.”
Erste Group forecasts GDP growth of 0.6% in 2025 and 0.9% in 2026.
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