As expected, economic momentum continued to decline at the end of the year. According to first estimations, domestic GDP fell by 0.7 percent in the fourth quarter of 2022 (key figure according to Eurostat). Thus, after three quarters of positive growth in 2022 (first quarter +1.2 percent, second quarter +1.9 percent, third quarter of 2022 +0.2 percent), economic output declined again for the first time. Year-on-year, compared to the fourth quarter of 2021, the value increased by 2.7 percent. This high growth is due to the lower level in the previous year, where measures of the fourth lockdown weighed on economic activity.
Thus, the economic growth calculated on the basis of unadjusted values amounted to 4.7 percent in the entire year 2022.
Against the backdrop of the global economic slowdown, domestic industry has also lost momentum since mid-2022. In the fourth quarter, value added in industry (NACE B to E) stagnated compared to the previous quarter. A decline of 0.9 percent was recorded in the construction industry.
The production of services also depressed the overall economic dynamics. In the sector trade, transportation, accommodation and food service activities, value added was 2.7 percent below the previous quarter. Consumer demand from private households declined in the same way (–2.4 percent). The high consumer prices clearly burdened the development here.
In contrast, value added in information and communication, financial and insurance activities, real estate activities (NACE J to L +0.4 percent) and public administration (+0.4 percent) had a stabilising effect.
In foreign trade, the momentum remained high. Exports rose by 2.9 percent, imports by 2.8 percent. Investment demand was also still stable. Gross fixed capital formation was expanded quarter-on-quarter (+2.4 percent).
The WIFO Flash Estimate is a first estimate for the past quarter. It is based on the Quarterly National Accounts of Statistics Austria and includes GDP as well as components in the form of seasonally and working-day adjusted rates of change compared with the previous quarter (key figure according to Eurostat standard).
On 28th February 2023, Statistics Austria will publish quarterly GDP data and main aggregates for the fourth quarter of 2022 based on more complete data, as well as preliminary annual data for 2022.