In 2023, economic output in real terms – i.e. adjusted for inflation – fell by one percent and not by 0.8 percent, as according to previous forecasts, Statistics Austria announced on Monday. Nominally, the gross domestic product (GDP) grew by 5.6 percent to 473.2 billion euros, which corresponds to 51,830 euros per capita.
“The construction industry and trade in particular recorded significant declines,” said Tobias Thomas, general director of statistics at Statistics Austria. The authority announced in response to an APA request that the figures for the construction industry showed the greatest deviations from previous forecasts. “The service industry proved to be the most resilient in 2023, with a decline of 0.6 percent in the crisis-ridden macroeconomic environment,” added Thomas.
Construction sector: decline of 7.5 percent
The production of goods recorded a decline of 1.8 percent, and the construction sector felt the recession very clearly with a 7.5 percent weaker gross value added. For the manufacturing sector, i.e. industry and construction, this resulted in a decline of 2.4 percent. Statistics Austria also reported that trade recorded a decline of 5.7 percent.
The service industry, on the other hand, was able to grow: accommodation and gastronomy reported an increase of 5.4 percent, while art, entertainment and recreation increased by 5.1 percent. The state (+1.2 percent) and non-profit organizations (+5.8 percent) still recorded increases in consumer spending. Private households, however, slowed down in consumer spending – they fell by 0.7 percent.
Vehicle investments developed positively
The declining construction investments also reduced gross fixed capital formation by 3.2 percent. This was mainly due to the 11.9 percent decline in residential construction investments, the 7.6 percent decline in building construction and the 2.4 percent decline in civil engineering.
However, vehicle investments developed positively, increasing by 17.2 percent. Expenditure on machinery and equipment increased only marginally by 0.1 percent.
Imports fell by 4.6 percent last year, while exports only fell by 0.4 percent. The number of employees and the number of hours worked increased by 1.4 percent in the previous year. Net wages and salaries rose by 8.8 percent due to the high salary settlements.