The Austrian economy experienced a relatively good first half of 2022, mainly due to the easing of restrictions in the service sector and strong international demand. The war in Ukraine and its consequences are however slowing down the economy and business sentiments in all sectors have deteriorated. High commodity prices, especially for energy, fire up inflation rates all over Europe. Bank Austria/UniCredit economists expect the Austrian economy to grow by 4.4 per cent in the year 2022 and by 1.5 per cent in the year 2023. Average inflation in 2022 will be at least 7 per cent. Despite the economic slowdown, there is a high number of job vacancies all over Austria and the unemployment rate is around 6 per cent relatively low.
The latest WIFO Business Cycle Survey shows that business expectations are turning more sceptical. Business uncertainty remains high due to gas supply imbalances and high energy prices. Demand for credit remains low.
Austrian exports of goods from January – May 2022 increased worldwide by 19 per cent compared to the same period in 2021, and exports to all of Asia were up by 13 per cent. Exports by the service sector in the first quarter of 2022 were up by 58%, especially due to international tourists visiting Austria again.
