The economy is gaining momentum in Austria. This also affects the individual federal states. While only Vienna recorded slight growth in 2024, there was an upward development in seven out of nine federal states last year. This is shown by an evaluation by UniCredit Bank Austria. Only Upper Austria (minus 0.2 percent) and Carinthia (minus 0.9 percent) reported a minus. Tyrol (plus 1.9 percent) and Vienna (plus 1.1 percent) were ahead.
Robert Schwarz, economist at Bank Austria, explains this with the strong focus of the pharmaceutical industry in these two federal states. “Industry in particular, but also trade, provided the first positive impulses again, even if the overall momentum remained low,” analyzes Bank Austria chief economist Stefan Bruckbauer.
Private consumption was a small support, while construction was the biggest brake. According to Schwarz, tourism also made a negative contribution despite good overnight stay numbers. The reason is the high costs for personnel and energy.
This year the situation remains challenging. Bruckbauer expects Austria-wide growth of 0.8 percent and no negative quarter is to be expected. Once again, the industry remains a growth driver, says Bruckbauer, because more is currently being ordered due to fear of delivery problems.
All federal states are expected to grow again, with Carinthia expected to record the strongest increase at 1.4 percent – driven by investments in artificial intelligence. Tyrol and Vienna follow with 1.0 percent each. The service sector will continue to be the most important pillar of economic development.
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