Austrian economy grows by +3.1% despite slowdown in dynamics

As regards the output approach by industry, manufacturing (+10.4% in real terms) as well as energy and water supply (+12.6%) experienced the most conspicuous growth. After declining three years in a row, construction grew by 2.7% in real terms. Again in 2011, financial intermediation (+6.0% in real terms) showed the most significant increase in the service sector. Industry in total (including mining, energy and construction) grew by 8.2% in real terms, whereas the service sector incremented only by 1.2% in real terms.

The increase in manufacturing was reflected in an upswing in the export of goods and services, which grew by 10.5% at current prices and 6.7% in real terms, respectively. Capital formation was the predominating component of domestic demand. However, its outstanding real growth of 14.0% was to a significant extent due to the huge increase in inventories (€ 6.7 bn.). Gross fixed capital formation grew by 5.7% in real terms. The largest increase was provided by the investments in machinery (+11.3% in real terms) and transport equipment (+22.5% in real terms). For the first time in three years, investment in dwellings +3.8% in real terms) and other construction (+1.9% in real terms) experienced positive growth rates, too. Final household consumption expenditure incremented only by +0.6% in real terms. Government final consumption expenditure increased by 2.7% in real terms. Hence, the real growth of total consumption was+1.1%.

Compensation of employees (i.e. the total remuneration, in cash or in kind, payable by an employer to an employee) increased by 4.7%, whereas the growth of operating surplus and mixed income was somewhat higher (+5.9%). Just as GDP, real net national disposable income increased by 3.1%.

The implicit price index of GDP (derived from the GDP at current prices and at constant prices respectively, based on previous year’s prices) was 102.1.  Thus, the overall price development was a significantly less than the change of the consumer prices index (+3.3%).