The Austrian economy dropped by 12.1% in volume terms
(seasonal and working day adjusted) during the 2nd quarter of 2020 compared
to the 1st quarter of 2020 and by 14.3% (unadjusted in real terms) compared
to the 2nd quarter of 2019. The measures to control the spread of COVID-19
affected nearly all economic indicators. However, due to the current
exceptional economic situation, major revisions of data are possible.
The quarterly main aggregates of National Accounts
were revised and benchmarked to the newly published annual accounts.
Starting in September 2020, STATISTICS AUSTRIA compiles and publishes
QNA. Therefore, there is a revision of the time series back to 1995
compared to the previously published figures, compiled by the Austrian
Institute of Economic Research (WIFO).
Private consumption declined by 12.6% in volume terms
compared to the previous quarter (-16.1% compared to Q2 2019), mainly
due to the lockdown of leisure services (accommodation, food service,
arts and entertainment). Consumption of housing (rents, electricity)
and food/beverages recorded slight growth.
Capital formation fell by 7.5% in volume terms compared
to Q1 2020 (-12.3% compared to Q2 2019). Capital formation in transportation
and in machinery were particularly affected, with a decline by -14.8%
in volume terms compared to Q1 2020 (-41.0% compared to Q2 2019) and
by -12.9% (-19.7% compared to Q2 2019), respectively. Capital formation
in construction also recorded a decrease (-7.4% in volume terms compared
to Q1 2020; -8.1% compared to Q2 2019).
Foreign trade has already slowed down in 2019. Imports
declined from Q2 2019 on and were severely hit in Q2 2020, when the
decline reached -13.2% in volume terms compared to Q1 2020 (-17.4% compared
to Q2 2019). Goods and services were affected equally. Exports show
a similar pattern (-13.2% in volume terms compared to Q1 2020; -18.1%
compared to Q2 2019). The absence of tourists is reflected in a significant
decrease of exports of services by -14.6% in volume terms compared to
Q1 2020 (-20.9% compared to Q2 2019).
The COVID-19 measures also left their mark in the
service sector, with accommodation and food services being affected
mostly. They recorded a decline of -65.2% in volume terms compared to
Q1 2020 (-61.1% compared to Q2 2019). As expected, arts, entertainment
and recreation also suffered losses (-27.0% in volume terms compared
to Q1 2020; -35.3% compared to Q2 2019).
In total, each economic activity recorded negative
volume growth in Q2 2020 compared to the first quarter in 2020. However,
the negative impacts differ substantially. Real estate activities (-0.7%
in volume terms compared to Q1 2020; +2.2% compared to Q2 2019), health
and public administration (-0.5% in volume terms compared to Q1 2020;
-0.6% compared to Q2 2019) as well as information and communication
(-1.3% in volume terms compared to Q1 2020; +1.1% compared to Q2 2019)
were hardly affected. Similar to the development of foreign trade, manufacturing
already slowed down in 2019. The lockdown then led to another remarkable
slump by -15.6% in terms of volume, compared to Q1 2020 (-18.4% compared
to Q2 2019).
The overall tense economic situation is also reflected
in employment indicators. The measures concerning short-term work resulted
in a decline of hours worked by 12.9% compared to Q1 2020 (-16.6% compared
to Q2 2019), but kept the decline of employment relatively small (-4.5%
compared to Q1 2020; -4.9% compared to Q2 2019). Compensation of employees
fell by 7.2% in current prices compared to Q1 2020, and by 6.2% compared
to Q2 2019.
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