This was the result of the quick estimate by the economic research institute (Wifo) on Friday. The positive development in the first quarter of this year was supported by the service sector, industry and construction.
On the demand side, both foreign trade and investment showed positive momentum. On the other hand, consumer spending by private households stagnated. The strong year-on-year increase was in comparison to a rather weak first quarter of 2021, when restrictive measures to contain the Covid-19 pandemic (third lockdown) had weighed on the economy. Even compared to the end of 2021 with the fourth lockdown, there was an increase in added value in services at the beginning of the year, albeit to a small extent, according to Wifo. In the fourth quarter of 2021, GDP shrank by 1.5 percent quarter-on-quarter.
At the beginning of the year, value added in industry rose by 4.0 percent compared to the previous quarter, while it had fallen slightly by 0.3 percent in the fourth quarter. In the construction industry there was an increase of 2.6 percent up to March, after a 1.9 percent minus before. According to Wifo, Russia’s war against Ukraine had very little dampening effect here, even though the companies were very uncertain about further developments.
Added value also grew in the consumer-related service sectors. In retail, accommodation, gastronomy and transport, it increased by 3.1 percent in the first quarter after a minus of 5.2 percent at the end of 2021. In other services – which includes personal services, arts, entertainment and recreation – the increase was the Value added quarter-on-quarter 9.7 percent, after an 8.8 percent decline in the final quarter of 2021. This development continued to be supported by other economic services and public administration.
Consumer demand from private households (including private non-profit organizations) stagnated in the first quarter of this year (+0.1 percent), after a decline of 3.6 percent in the final quarter of 2021. According to Wifo, public consumption also fell after three quarters of growth no longer increased at currently minus 1.0 percent.
According to Wifo, the dynamics of foreign trade were positive in the first quarter. Compared to the previous quarter, exports increased by 4.1 percent, imports by 5.5 percent; At the end of 2021 it was minus 0.9 and minus 1.6 percent respectively.
Investment demand also developed expansively: gross fixed capital formation rose by 4.2 percent quarter-on-quarter, after a quarterly decline of 0.7 percent.
Quarterly data for GDP and the main aggregates for the first quarter can be expected from Statistics Austria on June 2 based on more complete data.
Source: Nachrichten
