Major Regional Differences in Economic Development

Economic development in the Austrian federal provinces in 2023 was characterised by energy price shocks and a Europe-wide industrial recession. While the construction industry suffered from high interest rates, catch-up effects in tourism supported the overall economy, particularly in Vienna, Tyrol and Salzburg. According to the latest WIFO Flash Estimate, real gross value added rose in Burgenland, Salzburg and Tyrol, while all other federal provinces recorded declines. The labour market remained robust despite the weak economy; active employment increased by 1.2 percent.