After the worst slump in economic output since 1945,
Austria's economy is recovering for the first time in Q2 2021. After
five consecutive quarters of decline, gross domestic product (GDP) increased
by 12.0% in real terms compared to Q2 2020, according to preliminary
calculations by Statistics Austria. Compared to the previous quarter,
the increase in GDP was 3.6% (seasonally and working day adjusted).
Consumption strengthens again; investments
and foreign trade on the upswing
Household consumption is proving to be a strong growth
driver in Q2 2021, with real growth of 9.9% year-on-year (+3.3% q-o-q).
The end of the lockdown in Q2 is particularly noticeable in consumption
of services (+13.9% y-o-y, +21.8% q-o-q). Investments are also making
up again, with a real growth rate of 13.1% compared with Q2 2020 (+1.8%
The end of the lockdown is also leaving its mark on
exports of goods and services. In real terms, export grows by 25.6%
compared with the same quarter of the previous year (+7.1% q-o-q). Imports
of goods and services in Q1 2021 are expected to increase by 19.1% in
real terms, compared with Q2 2020 (-2.1% q-o-q).
Accommodation and food services on the road
to recovery; manufacturing remains on growth path
The industries most affected by the lockdown show
the highest growth rates in Q2 2021, but cannot yet reach pre-crisis
levels. Food services and accommodation grow by 41.3% y-o-y in real
terms, reaching just under 50% of its Q2 2019 value added. Arts, culture
and personal services also show strong growth in real terms (+16.7%
y-o-y), but only reaching 75.7% of pre-crisis levels.
Trade is recovering after the end of the lockdown,
growing by 22.6% in real terms compared to Q2 2020 (+19.0% q-o-q). It
also exceeds pre-crisis levels, recording 104.4% value added as measured
by value added in Q2 2019. Manufacturing entered a recovery phase early
in the year and remains stable with 20.4% real y-o-y growth (-0.4% q-o-q).
Professional and business services are also experiencing a continuing
upturn, with real growth of 20.9% compared with Q2 2020 (+0.6% q-o-q).
Employment and hours worked are growing again
The labour market starts to recover in Q2 2021. Employment
numbers increase by 2.3% compared to Q1 2021. This represents a 5.2%
growth compared to the same quarter last year. The lockdown ending is
most evident in a significant increase in hours worked (+16.5% y-o-y,
Total wages and salaries grow by 4.3% (in nominal
terms) compared to Q1 2021, with an increase also observed compared
to Q2 2020 (+9.9% in nominal terms).