Consumers in Austria are still cautious when it comes to private spending. Last but not least, the high inflation rate of 8.6 percent (2022) and 9.8 percent (April 2023) is causing concern among households.
Although private consumer spending rose by 0.7 percent in the first quarter of 2023, according to the flash estimate of the national accounts of the Austrian Institute for Economic Research (Wifo). However, they have declined in the previous three quarters.
The caution of Austrian households is understandable: according to a study by Statistics Austria, by the end of 2022 more than a third of respondents aged 16 to 69 stated that they had suffered a loss of income in the previous year.
Statistics Austria added that high inflation in particular had reduced incomes, with low-income earners particularly affected.
Gross domestic product grew by five percent in real terms last year, while disposable income increased by an average of 0.6 percent in real terms.
A glimmer of hope: household energy prices fell in March, as did fuel costs. The price of wood pellets also fell by 16.1 percent.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
