A city on a lake in Austria

Austria Economic Forecast

Austria Economic Outlook

According to a flash estimate, the economy entered a recession with a 0.6% contraction in seasonally adjusted quarter on quarter terms in Q3 (Q2: -0.8%). Total consumption fell more compared to the preceding quarter, while fixed investment declined at a slower pace, and exports of goods and services rebounded. In Q4, the economy is expected to show muted growth. The manufacturing PMI remained firmly in negative territory in October despite slightly improving from Q3’s average. Furthermore, weak consumer sentiment, higher interest rates and persistent inflation likely hurt private spending. In other news, the metal and manufacturing industries started a three-day strike on 6 November following failed collective bargaining negotiations in the preceding week. If no agreement is reached, further strikes are likely to follow.

Austria Inflation

Harmonized inflation fell to 4.9% in October (September: 5.7%) on softer housing and utilities price growth. Inflation is set to fall by Q4 2024 from current levels on past ECB rate hikes and lower commodity prices. Potential energy market disruptions, especially considering the country’s reliance on Russian gas, are an upside risk.

This chart displays Economic Growth (GDP, annual variation in %) for Austria from 2013 to 2022.

Austria Economic Data

2018 2019 2020 2021 2022
Population (million) 8.9 8.9 8.9 9.0 9.0
GDP (EUR bn) 385 397 381 405 447
GDP per capita (EUR) 43,362 44,830 42,792 45,127 49,553
Economic Growth (Nominal GDP, ann. var. %) 4.3 3.1 -4.1 6.4 10.4
Economic Growth (GDP, ann. var. %) 2.4 1.5 -6.7 4.4 4.8
Domestic Demand (ann. var. %) 2.4 0.5 -5.9 6.6 2.7
Private Consumption (ann. var. %) 1.1 0.6 -8.5 4.0 5.8
Government Consumption (ann. var. %) 1.3 1.3 -0.4 7.7 0.1
Fixed Investment (ann. var. %) 4.2 4.8 -5.2 6.0 0.3
Exports (G&S, ann. var. %) 5.0 3.9 -11.2 9.4 11.6
Imports (G&S, ann. var. %) 5.2 2.2 -10.0 14.0 8.1
Industrial Production (ann. var. %) 5.2 1.5 -5.3 9.6 5.9
Wages (ann. var. %) 2.7 3.0 2.3 1.7 3.1
Unemployment (% of active population, eop) 5.2 4.7 6.8 4.8 4.9
Unemployment (% of active population, aop) 5.2 4.8 6.1 6.2 4.8
Fiscal Balance (% of GDP) 0.2 0.6 -8.0 -5.8 -3.5
Public Debt (% of GDP) 74.1 70.6 83.0 82.5 78.4
Inflation (HICP, ann. var. %, eop) 1.7 1.8 1.0 3.8 10.5
Inflation (HICP, ann. var. %, aop) 2.1 1.5 1.4 2.8 8.6
ECB Refinancing Rate (%, eop) 0.00 0.00 0.00 0.00 2.50
ECB Overnight Deposit Rate (%, eop) -0.40 -0.50 -0.50 -0.50 2.00
3-Month EURIBOR (%, eop) -0.31 -0.38 -0.55 -0.57 2.13
10-Year Bond Yield (%, eop) 0.50 0.03 -0.43 0.09 3.20
Stock Market (var. of ATX %) -19.7 16.1 -12.8 38.9 -19.0
Exchange Rate (USD per EUR, eop) 1.14 1.12 1.22 1.14 1.07
Exchange Rate (USD per EUR, aop) 1.18 1.12 1.14 1.18 1.05
Current Account Balance (EUR bn) 3.5 9.5 13.1 6.7 -1.3
Current Account Balance (% of GDP) 0.9 2.4 3.4 1.6 -0.3
Merchandise Trade Balance (EUR bn) -6.0 -4.3 -1.9 -12.9 -20.6
Foreign Direct Investment (EUR bn) 4.6 4.4 -8.2 11.4 1.9

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