International Economic Slowdown hits Austria hard

In addition to the easing of the energy crisis, geopolitical upheavals continued to shape global economic developments in 2023. Economic activity varied from region to region, with the economy of the USA expanding strongly among the advanced economies. Western European countries, on the other hand, were weak, with some even slipping into recession. This also applies to Austria, with value added falling in manufacturing and some service sectors. Inflation eroded household purchasing power, leading to a decline in consumer demand. As a result of the rise in consumer prices, gross wages and salaries stagnated in volume terms, while net wages and salaries per capita are estimated to have risen slightly as a result of government support measures. At 7.8 percent, inflation remained very high by historical standards for the second year in a row.