Austrian economy in 2009: largest decline in post-war history

According to estimates by Statistics Austria the Austrian economy decreased by 3.9% in 2009. Thus, this means the most significant drawback in economic growth since World War II. The background of a demanding international environment is also reflected by the economic development of other EU and OECD countries. The average decrease for the EU countries was -4.2%, the Euro Zone (EMU-16) faced a decline of the economy by -4.1% (Source: Eurostat Databank, July 2010). GDP of the OECD countries dropped by -3.3% on average (Source: OECD, Main Economic Indicators, June 2010). The decrease for Austria’s most important trade partners Germany (-4.9% in real terms) and Italy (-5.0% in real terms) was even worse.

Gross domestic product (GDP) at current prices decreased by € 8.8 bn, or -3.1%, to approximately
€ 274.3 bn in 2009. Hence, GDP per inhabitant amounted to € 32,800 (-3.4%).

As regards the output approach by industry, manufacturing experienced the most conspicuous setback (-14.3% in real terms). Manufacturing is predominantly export oriented and, thus, it strongly depends on the international economic environment. Transport and communication services, which decreased by -9.1% in real terms, did also experience a significant downturn in 2009. Both cargo and passenger transport were strongly affected by the economic turmoil. Positive growth rates in real terms were only observed for energy and water supply as well as for financial intermediation, both activities increasing by 5.8% in real terms. Industry in total (including mining, energy and construction) declined by -10.5% in real terms. The service sector, on the other hand, declined by 1.6% and, thus, was hit less severely by the international crisis.

The decline in manufacturing was reflected in a dramatic slump in the export of goods and services, which fell by -17.3% at current prices and -16.1% in real terms, respectively. Domestic demand, on the other hand, showed a significant decrease of gross capital formation by -12.7%. Gross fixed capital formation decreased by -8.8% in real terms. Demand for both transport equipment (-19.2% in real terms) and machinery (-12.9% in real terms) shrunk significantly. Final household consumption expenditure incremented by +0.6% at current prices and +1.5% in real terms, respectively. The increase in government final consumption expenditure was +3.5% at current prices and +0.4% in real terms, respectively.

Net national disposable income declined by -4.1% to € 224.3 bn. Compensation of employees (i.e. the total remuneration, in cash or in kind, payable by an employer to an employee) increased by 0.9%, whereas operating surplus and mixed income decreased significantly by -8.6%. 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 100.8. Hence, the overall price development was somewhat stronger than the change of the consumer prices index (+0.5%).

Table(s):
Main aggregates
Expenditure on gross domestic product, chained volume indices
Expenditure on gross domestic product, current prices
Final consumption expenditure, chained volume indices
Final consumption expenditure, current prices
Gross capital formation, chained volume indices
Gross capital formation, current prices
Gross domestic product per economic sectors, current prices
Gross domestic product per industry, chained volume indices
Gross domestic product per industry, current prices
Income approach of gross domestic product, current prices
Private consumption, constant prices
Private consumption, current prices

Further information:
Inventory of Methods for Price and Volume Measures in the Austrian National Accounts
National Accounts Inventory of Austria (in german only; 3MB)

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Austrian economy in 2009: largest decline in post-war history