Recession, inflation that is still high compared to the EU and challenging wage agreements: Austrian companies are nevertheless rather optimistic regarding 2024. This is shown by the annual company barometer conducted by the consulting firm Deloitte – around 550 local managers were surveyed.
More than half assume that their own company’s sales, profits and market shares will develop positively in the next six months. Harald Breit, head of Deloitte Austria, is also surprised that the mood among the managers surveyed has improved compared to the previous year: “The economy has obviously adapted well to the crisis conditions.”
However, with a view to the overall economy, the outlook is clouding over: 53 percent of those surveyed expect stagnation in the first half of 2024, and 29 percent expect a further decline in economic output. A majority of respondents are concerned regarding labor shortages, inflation and the geopolitical situation.
A large proportion of executives also fear an increase in cybercrime and a renewed increase in energy costs, according to Deloitte. Due to the wage agreements, a possible wage-price spiral is also expected for 2024.
Financing for 184 start-ups
At first glance, the economic collapse did not have any serious impact on the domestic start-up scene. After the record years of 2021 and 2022, the number of financing rounds increased once more this year: 184 start-ups – more than ever before – secured an investment, according to the consulting firm EY. Companies with headquarters in Austria that were founded no more than ten years ago were taken into account.
At the same time, the total value of these investments fell by almost a third compared to 2022, from around one billion euros to a total volume of 695 million euros. Most of the investments (104) went to Viennese start-ups, and there were 17 rounds of financing in Upper Austria. “With the changed market environment, consolidation has also taken place, and the overheated competition has noticeably cooled down,” says Florian Haas from EY Austria.
