Domestic Economy in Good Shape Before Outbreak of War in Ukraine

Economic output in Austria was again above the pre-crisis level in February. The prospects in the sectors most affected by the fourth lockdown have recently brightened considerably, especially in accommodation and food services. The domestic unemployment rate, seasonally adjusted, is at its lowest level since the outbreak of the financial market and economic crisis in 2008, and the number of job vacancies has reached a new high. Inflation recently rose to just under 6 percent and is likely to remain high for longer due to commodity price shocks related to the Ukraine war. A possible disruption of Russian natural gas supplies poses risks for certain sectors of domestic industry.