The regained purchasing power is not yet perceived
- The losses in purchasing power of up to 10 percent due to the sharp rise in inflation in recent years have already been largely offset by wage increases up to the first quarter of 2025.
- However, different results in wage negotiations and different adjustment dates lead to differences in the development of the real purchasing power of employees depending on the sector.
- Employees in energy supply, public administration and other economic services are already showing real increases in purchasing power.
- In the course of 2025, the increase in collective wages will ensure that, on average and in almost all main groups, real purchasing power of 2020 will be fully restored.
- The significantly higher perceived inflation measured on the basis of the mini- or micro shopping basket explains the high consumer restraint despite regained purchasing power.
- The regained purchasing power was already reflected in a real increase in disposable income and the savings ratio in 2024. A savings ratio at the level of the long-term average would have brought economic growth to Austria in 2024 via consumption.
- More aggressive consumption behavior is also crucial for an improvement in the Austrian economy in 2025 to avoid another year of GDP decline.
Analyse The regained purchasing power is not yet perceived (PDF)
as of April 2025.
Tariff shock: Regional impacts
- On April 2, 2025, US President Trump announced the introduction of so-called "reciprocal" tariffs. There is the base rate of 10 percent, which applies to all U.S. trading partners. In addition, there is a country-specific import tariff, which is 10 percent for EU countries, for example. Overall, a minimum tariff rate of 20 percent will apply to imports from the EU for most goods in the future. On April 9, President Trump ordered that only the 10 percent flat rate for all countries except China would be applied for the next 90 days. The already fixed tariffs of 25 percent on steel and aluminum or motor vehicles will remain in place.
- The USA is an important trading partner of Austria. In 2024, Austrian exports to the USA amounted to 16.2 billion euros, with machinery, automotive industry products and pharmaceutical goods being the main categories. This makes the United States the second most important export partner after Germany.
- Imports from the USA to Austria amounted to 7.7 billion euros in the previous year, significantly below the export volume to the USA. This corresponds to an Austrian trade surplus of about 8.5 billion euros with the United States. The most important import goods are pharmaceutical products, motor vehicles and optical equipment.
- Styria, Upper Austria and Vienna are responsible for more than two-thirds of Austrian exports to the USA. Burgenland has by far the lowest export volume. In the two industrial strongholds of Styria and Upper Austria, exports to the USA account for the highest share of regional economic output at 6.4 and 4.7 percent respectively.
- Overall, we assume that the protectionist measures in the USA will push down domestic economic output by 0.25 percent, with Styria (-0.5 percent) and Upper Austria (-0.4 percent) feeling the effects the most.
Analyse Tariff shock from the USA (PDF)
as of April 2025.
2025
Tariff shock from the USA (PDF) (April 2025)
2024
Labour market in Austria (PDF) (November 2024)
Austria's world market share (PDF) (July 2024)
Competitiveness (PDF) (July 2024)
Holiday euro 2024 (PDF) (June 2024)
Analysis of tourism revenue (PDF) (May 2024)
Real Estate prices (PDF) (February 2024)
2023
Construction industry (PDF) (August 2023)
Housing affordability (PDF) (August 2023)
Tourism in Austria (PDF) (October 2023)
Working time (PDF) (June 2023)
Holiday euro 2023 (PDF) (May 2023)
2022
Working time (PDF) (November 2022)
Real Estate Country Facts (PDF) (November 2022)
Energy Costs at sector level (PDF) (October 2022)
Holiday euro 2022 (PDF) (June 2022)
Cost of living (PDF) (March 2022)
Energy prices (PDF) (March 2022)
Housing prices (PDF) (January 2022)
2021
Real Estate Country Facts (PDF) (November 2021)
Comparison of industrial upswing in the federal states (PDF) (October 2021)
Tax changes in Austria (PDF) (October 2021)
Fuelling will soon be cheaper, but not in the long run (PDF) (September 2021)
Revenue from tourism in the "year of the coronavirus" 2020 (PDF) (May 2021)
The effects of the first pandemic wave on the labour market (PDF) (January 2021)
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It is an analysis based on publicly available economic data. Despite careful research and the use of reliable sources, no responsibility can be taken for completeness, correctness, timeliness and accuracy.
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