Lockdown caused decline of Austrian economy by 5.7% in the 4th quarter

Heavy losses in consumption and foreign trade of services, gross capital formation stabilises

Consumption of private households recorded substantial losses of 11.2% in real terms compared to the 4th quarter of 2019. This is mainly caused by a sharp decline of consumption of services (-21.7% in real terms). Compared to the 3rd quarter of 2020 consumption of services dropped by 14.8% in real terms. Final consumption expenditure of government increased by 4.1% in real terms compared to the 4th quarter of 2019 (1.6% in real terms compared to the previous quarter).

In foreign trade, services also were affected more severely. Compared to the 4th quarter of 2019, export of services dropped by 21.8% in real terms and import of services by 14.1% in real terms. The recorded decline of export and import of goods (-2.4% and -0.1% in real terms respectively) was comparatively low.   

Capital formation stabilised slightly after the outbreak of COVID-19 crisis and hardly declined by 0.7% in real terms compared to the 4th quarter of 2019 (+0.4% compared to the previous quarter). In particular, capital formation in total machinery and equipment recorded positive growth rates (1.7% compared to the 4th quarter 2019, 2.8% compared to the previous quarter).  

Accommodation and food services again declining, manufacturing and construction little affected 

The lockdown during the 4th quarter 2020 had a significant impact on accommodation and food service activities, trade and transportation (-19.7% in real terms compared to the 4th quarter of 2019) as well as on arts and entertainment (-21.5% in real terms compared to the 4th quarter of 2019). During the 3rd quarter 2020 these industries could recover. However, they recorded significant losses from the 3rd to the 4th quarter of 15.6% in real terms (accommodation and food service activities, trade and transportation) and of 12.5% in real terms (arts and entertainment).

Manufacturing was still below the pre-crisis level (-1.3% in real terms compared to the 4th quarter of 2019), but recorded slight growth (1.7% in real terms) compared to the 3rd quarter of 2020. Construction was also less affected by the crisis (-2.4% in real terms compared to the 4th quarter of 2019).

Irrespective of COVID-19 containment measures, financial services (+3.1% in real terms compared to the 4th quarter of 2019) and real estate activities (+2.2% in real terms compared to the 4th quarter of 2019) as well as information and communication (+1.6% in real terms compared to the 4th quarter of 2019) increased moderately. These industries also grew slightly compared to the 3rd quarter 2020.