According to calculations by Statistics Austria the Austrian economy
increased by +2.3% in 2010. In the wake of the global economic and financial
crisis, growth weakened in 2008 (+1.4%) and even turned negative in
2009 (-3.8%). This meant the most significant growth setback since World
War II. In 2010, however, Austria could benefit greatly from the international
economic recovery. Real growth reached 2.3%, which is both above Euro
Zone’s (1.8% in real terms) and EU countries’ average (1.8%
in real terms) (Source: OECD, Main Economic Indicators, September 2011).
For the first time all national accounts calculations are based on
the revised statistical classifications of economic activities and products
by activity from 1995 onwards. The introduction of an updated classification
system particularly aimed for taking better account of the service sector,
due to its growing importance in European economy.
A closer look at the output approach by industry reveals that manufacturing
(+7.2% in real terms) as well as financial and insurance activities
(+6.9% in real terms) recorded far above average growth rates in 2010.
In 2009 manufacturing had particularly suffered from the global economic
downturn. It declined by 15.0%, which was not only the strongest setback
among all other economic sections, but also unique in post-war history.
Refined petroleum and pharmaceutical industry nevertheless recorded
above average growth rates and thus proved resistant to the crisis.
In 2010 manufacturing could fully recover by reaching pre-crisis level
of growth rates. In contrast, financial and insurance activities continued
their long-run dynamic growth, even in 2009 (+9.5% in real terms).
Whereas most sections in Austria benefited from the economic upturn
after the crisis in 2010, construction (-3.0% in real terms), information
and communication (-3.7% in real terms) and transportation (-1.1% in
real terms) still faced negative growth rates. Nevertheless construction
(2009: -7.5% in real terms) and transportation industry (2009: -7.9%
in real terms) experienced weaker downward trends in 2010. The slightly
positive development in transportation industry can be put down to the
economic recovery of air transport as well as operation of toll roads
and service activities incidental to air transportation. Information and communication remained virtually unaffected by economic
recovery and has recorded negative growth rates for three consecutive
years.
On the expenditure side, growth is mainly driven by increasing exports.
As manufacturing in Austria is primarily export-oriented, exports as
well as manufacturing faced a dramatic slump in 2009 (-14.3% in real
terms) and rose again in 2010 (+8.3% in real terms). Growth in gross
capital formation, despite not as strong as in export, reached noticeable
+3.6% in real terms. The positive development is mainly caused by increasing
capital formation in machinery, equipment (both +2.2% in real terms)
and vehicles (+9.6% in real terms). Declining capital formation in construction
(-2.3% in dwellings, -3.3% in other buildings, each in real terms),
however, deteriorated the upward movement. Consumption recorded the
slightest rise (+1.5% in real terms) of all expenditure categories in
2010, but was hardly affected by the economic crisis in 2009 (-0.1%
in real terms). Private consumption in 2010 increased by 2.1% in real
terms, whereas public consumption slightly declined (-0.2%) in real
terms and rose by 1.7% at current prices.
The income approach shows that recipients of operating surplus and
mixed income benefited most from GDP growth in 2010. After suffering
high losses in 2009 (-8.1% at current prices), they experienced an increase
by +6.7% at current prices. Compensation of employees (i.e. the total
remuneration, in cash or in kind, payable by an employer to an employee)
remained nearly constant in 2009 (+0.9% at current prices) and grew
moderate in 2010 (+2.4% at current prices). The volume of total hours
worked dropped sharply by -3.3% in 2009. This development suggests a
shift towards part- and short-time employment. In 2010 number of hours
actually worked remained virtually unchanged (+0.2%).
Real net national disposable income increased by 1.6% in real terms
and thus fell behind GDP growth. This can be explained by rising import
prices (+4.8%), which reduced purchasing power of disposable income.
The implicit price index of GDP (derived from the GDP at current prices
and at constant prices respectively, based on previous year’s prices)
was 101.8. Hence, the overall price development was hardly different
from the change of the consumer prices index (+1.9%).
