The disposable income of Austrian households has fallen slightly in 2023 due to inflation. Although incomes rose by 7.6 percent in nominal terms, in real terms there was a decline of 0.5 percent compared to the previous year, CBS announced in a press release on Friday.
According to preliminary data, inflation-adjusted private consumption fell by 0.3 percent over the same period. In the meantime, the savings rate has also fallen slightly.
Less is set aside
While Austrian households will save 9.2 percent of their disposable income in 2022, this was slightly less last year at 9 percent. This means that the part of income that is not used for consumption has recently returned to pre-Corona levels.
Corona caused a higher savings rate
In 2020, the Corona measures led to less consumer spending and therefore to a savings rate of 13.2 percent. In 2021 that was 11.2 percent. The disposable income of private households increased from 250.3 billion euros in 2022 to 269.4 billion euros, but this was offset by high inflation.
Among the main income categories, employee benefits increased nominally by 8.9 percent, cash social benefits increased by 6.6 percent and other transfers decreased by 2.8 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.
