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Sunday | January 17 | 2021

Austrian economy grew by 12% in Q3 2020 compared to previous quarter

From July to September 2020, the Austrian gross domestic product (GDP) increased by 12.0% in real terms compared to April to June, as Statistics Austria reports.

Compared to the third quarter 2019, a decline of 4.0% in real terms was recorded.

The temporary easing of measures to contain the COVID-19 pandemic stimulated nearly all industries, private consumption, capital formation as well as foreign trade.

Overall, however, the economy remained below the pre-crisis level.

Recovery of consumption

In the third quarter of 2020, consumption of private households showed a substantial growth of 13.3% in real terms compared to the previous quarter.

The decline of 5.1% compared to the third quarter of 2019 can be traced back to a still weak demand for services.

In contrast, demand for durable consumption goods, in particular furniture, recorded a substantial catch-up effect (+7.7% in real terms compared to the previous year’s third quarter).

Surge in growth of services

Nearly all industries recovered during the summer months. Above all, the industries most affected by the lockdown during the first half of the year recorded remarkable real growth rates from the second to the third quarter.

Trade and transportation as well as accommodation and food services grew by 32.9% (-4.5% compared to the third quarter of 2019).

Arts, recreation and personal services increased by 39.2%. However, the losses were not fully compensated (-7.7% in real terms compared to the third quarter of 2019). 

Manufacturing and construction also recorded an increase

Manufacturing also gained momentum during the third quarter of 2020 (+15.7% in real terms compared to the previous quarter, -4.0% in real terms compared to the previous year’s quarter).

Construction recorded real growth of 10.1% compared to the previous quarter and thereby reached pre-crisis levels (+0.2% in real terms compared to the previous year’s quarter). 

Industries which were rarely affected by the lockdown, such as real estate activities, public administration and health services, remained overall stable (real estate activities: -0.4% in real terms compared to the second quarter and +1.5% in real terms compared to the third quarter of 2019, public administration and health services: +0.5% in real terms compared to the second quarter and +0.6% in real terms compared to the third quarter of 2019).

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