The Austrian economy continued to grow in the third quarter. Economic output grew by 1.7 percent year-on-year in real terms, corresponding to a GDP increase of 0.2 percent compared to the second quarter of 2022. The main growth driver was industry (excluding construction), which grew by 2 .2 percent grew. Many economic sectors are already above pre-corona levels.
Compared to the same period before the corona crisis, i.e. 2019, GDP increased by 2.6 percent. This is evident from Statistics Austria’s “Austrian Recovery Barometer”. “Austria is still in the midst of multiple crises,” Tobias Thomas, Austria’s director-general of statistics, said Monday.
Pandemic, war in Ukraine and high inflation as challenges
He referred to the corona pandemic, the war in Ukraine and high inflation. “All three crises interact with each other and affect many economic numbers.” Despite the difficult framework conditions, the Austrian economy continued to grow in the third quarter of this year. In the third quarter there was an increase of 1.7 percent. In the first quarter of this year growth was still 9.2 percent, in the second quarter the economy grew by 6 percent.
Declining trend in gastronomy
The main growth engine in the third quarter was manufacturing (excluding construction), which grew by 2.2 percent. The areas of public administration, education and healthcare also grew by 2.1 percent. Trade generated 1.7 percent more. On the other hand, the development of other services (especially recreational, cultural and sports facilities) fell by 1.7 percent. Statistics Austria also recorded a downward trend in gastronomy and accommodation by minus 2.6 percent compared to the same period in 2021.
Most sectors of the economy are already well above pre-corona levels. For example, the production of goods, mining and the energy sector were 5.4 percent higher in the third quarter than in the same period in 2019, while other economic services, such as consultancy or agency work, grew by 3.8 percent compared to 2019.
Public administration, information and communication, real estate and housing, construction and transport have also exceeded pre-Corona levels. The hospitality and accommodation sector was still below the level of 2019 at 89 percent. The total economic output was above the third quarter of 2019 for the fifth time in a row.
Inflation in October: highest in 70 years
Inflation reached 11.0 percent in October 2022, the highest level in 70 years. In November, inflation was expected to reach 10.6 percent, “corresponding to the first substantial month-on-month decline since the outbreak of the inflationary crisis,” Thomas said.
However, inflation levels remain high. The reason for the lower inflation is the easing of energy prices in recent months and government measures to curb inflation. The interest rate hikes by the European Central Bank (ECB), on the other hand, would only take effect after 12 to 18 months.
Source: Krone
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