Gross Fixed Investment by Sectors

New calculations of gross fixed investment by 19 economic sectors point to marked structural shifts since the mid-1980s. Thus, the share of public investment, notably in infrastructure, declined, whereas that of certain service industries rose strongly. Overall investment in Austria amounted to 510 billion AS in 1992, slightly more than twice the 1980 level. Residential building accounted for about one-quarter of the total. While in mining and many basic industries capital spending in 1992 was lower at current prices than in 1980, it rose above-average over the whole period in the pulp and paper industry and in merchandise trade. Thus, the trade sector's share in total investment rose from 6.7 to 10.8 percent. During the second half of the period, from 1986 to 1992, overall investment rose notably faster than before, at 7.1 percent p. a. versus 5.2 percent. This was due mainly to residential construction which boomed particularly in 1991-92, leading also to stronger investment in the construction industry itself. On the other hand, the pulp and paper and the chemical industry registered relatively stronger investment activity in the early 1980s. The overall investment ratio (as percent of GDP) markedly exceeded 25 percent almost throughout the 1960s, but declined towards 23 percent between 1983 and 1985 before regaining 25 percent in the early 1990s. Since the mid-1980s the share of private investment has been rising steadily, partly reflecting a structural shift towards the service sector. New financial associations and instruments have played an increasing role as well as the more widespread use of computer and telecommunication equipment.