The domestic economy is still in the recession. The customs threat of the United States as the second most important trading partner in Austria also presses on the mood.
After a drop of one percent in 2023, the economic output in the previous year shrunk by 1.2 percent. Industrial production in particular continued to deteriorate, the economic report of the Austrian Institute for Economic Research (WIFO). But the expectations are also steamed. It looks better for the building economy and for tourism and trade.
In the fourth quarter of 2024, the economic output fell by 0.4 percent compared to the previous period and therefore slightly stronger than in the third quarter (-0.3 percent). Industrial production in the eurozone suffered from international weak demand. There is currently no remarkable improvement, noted Marcus Scheibecker, author of the WiFo Economic Report. Recent company investigations indicate that the downward trend will only delay in the coming months.
First positive economic data, consumer trust weakens
The construction sector of Austria, on the other hand, has probably been reached the valley sole. The cheaper interest environment and the expected loosening of the guidelines for credit transfer ensure better framework conditions here. Consumption Demand, on the other hand, has also developed positively: real retail sales attracted real retail sales in the second half of 2024. The new car registrations have also increased considerably in recent months. However, this cannot hide the weakening consumer confidence that is taxed by the fear of your own workplace and the many insolventions of the company. On the other hand, tourism developed pretty positively: after a night record in the summer of the previous year, a new high will also come up for the current winter season.
Inflation attracted again
At the beginning of the year – as expected – inflation increased again because the brake brake of the electricity price expired. Moreover, fossil fuels became more expensive and the euro weaker. After a price increase of 3.2 percent in January, inflation rose to 3.3 percent in February according to the rapid estimate of the Austria statistics. The unemployment rate increased considerably compared to the year, but has stagnated in recent months. The number of employees increased in February compared to the previous month. However, this increase could not compensate for the jobs in January.
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.
