Austria’s economy shrank more sharply than expected in 2023, according to new data from Statistik Austria.
“The construction industry and retail sector saw the biggest declines,” said Tobias Thomas, Director-General of Statistik Austria. “The service sector, however, showed the greatest resilience, contracting by just 0.6% despite the challenging economic environment.”
The country’s Gross Domestic Product (GDP), adjusted for inflation, fell by 1% in 2023, compared to the 0.8% previously forecast. However, in nominal terms, the economy grew by 5.6% to €473.2 billion, or €51,830 per person.
The manufacturing sector recorded a 1.8% drop in output, with construction taking a heavy hit, down 7.5%. Across the broader production sector, which includes both heavy industry and construction, the overall decline was 2.4%. Retail trade also struggled, showing a 5.7% decrease.
In addition, housing investment dropped by 11.9%, building construction by 7.6%, and civil engineering by 2.4%. Imports fell by 4.6%, while exports slipped by just 0.4%.
On a more positive note, services, particularly in accommodation and food, grew by 5.4%, while the arts, entertainment, and recreation sectors expanded by 5.1%. Employment and working hours rose by 1.4%, and wages increased by 8.8%, driven by higher wage agreements. Government and non-profit organisations increased their spending by 1.2% and 5.8% respectively, but private household consumption fell by 0.7%.