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Economic Growth Decreased Slightly in the 4th Quarter of 2010

Published: February 16, 2011; 00:08 · (Vindobona)

The rise of Austria's economic performance in the 4th quarter 2010 was 0.6% in real terms compared with the previous quarter. This figure does not exactly strengthen the momentum of the economy.

Economic Growth Decreased Slightly in the 4th Quarter of 2010 / Picture: © Vindobona.org

Compared with the previous period, the Austrian economy continued its dynamic expansion in the fourth quarter of 2010 with +0.6%, but the figure is weaker than in the two previous quarters (third quarter +0.9%, second quarter +1.2%). In the fourth quarter, the unadjusted GDP was 2.4% above the level of the previous year. The economy is driven again by the exports industry. In the manufacturing industry, the upswing holds on since mid-2009, the value created grew in the fourth quarter by 1.5% compared with the previous period.  However, this does not mean the dynamism of the economy intensifies.

In parallel, exports increased less strongly than before in the fourth quarter (+1.4%; in the second and third quarters the rate was over twice as high). This development is determined by the increase in goods exports and the expansion of world trade. Imports also expanded again (+0.8%). Compared with the unadjusted values of the previous year, figures for both exports and imports show two-digit growth rates since the second quarter of 2010, (exports +11.1% and imports 10.1%).

Investments developed in a clearly more dynamic way in the fourth quarter. Gross fixed investment (construction and equipment investments) increased by 1.4%. Especially towards the year-end, the demand for equipment increased strongly. In contrast, the crisis in the construction industry continues. Both the demand for construction investments and the value creation declined once again in the fourth quarter.

Financial and business services continued expanding in the fourth quarter (+0.8%). In the areas of trade, transport and communications, growth was rather subdued (+0.3%).