As a result, GDP stagnated in the third quarter. The Austrian Institute for Economic Research (Wifo) announced in a broadcast that exports and added value in the production of goods fell.
There has recently been a slight relaxation on the energy markets. Because the price of natural gas, which had risen enormously since Russia attacked Ukraine, fell sharply in October. Raw material prices were nevertheless significantly higher than in the previous year. As a result, inflation remained very high at 11 percent in October, noted Stefan Eder, author of the current economic report.
But the international economy has been weakening since the spring. High energy and raw material prices are dampening the mood of companies and private households. While global trade in goods lost some momentum in the summer months, growth in industrial production has not slowed down so far. In the US, the economy grew strongly in the third quarter after having contracted in the first half of the year. In the euro area, on the other hand, the economy weakened in the summer months.
In Austria, too, the economy stagnated in the third quarter. Despite high energy prices, consumer spending by private households proved to be a pillar of the economy. However, company surveys indicate that the economic downturn will continue in the coming months.
The prospects for the Austrian economy are therefore rather gloomy according to the Wifo business survey. Both the assessments of the current situation and the economic expectations of the companies surveyed deteriorated in October.
Despite the slight easing on the energy markets, electricity and gas are likely to have been the strongest price drivers again. In addition, groceries, alcohol and tobacco, industrial goods and services were also significantly more expensive in September than in the previous year.
The economic slowdown has not yet had an impact on the Austrian labor market. According to estimates by the Federal Ministry of Labor and Economics (October), the number of employees was 1.7 percent higher than in the previous year, and the number of unemployed (including people in training) was 6.4 people lower. Seasonally adjusted, the unemployment rate remained unchanged at 6.3 percent.
Source: Nachrichten
