The Austrian economy dropped by 5.7% in real terms
during October to December 2020 compared to the same period in 2019.
This means a decline of 2.7% in real terms (seasonal and working day
adjusted) from the 3rd to the 4th quarter of 2020.
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.