The global economy remains on course for recovery. While GDP in China and the USA increased in the first quarter of 2021, economic output in the euro area decreased compared with the previous quarter. However, confidence indicators from April also point to a recovery in the euro area. In Austria, business sentiment brightened across the board, including in the service sector. Inflation picked up in March due to the increase in the cost of energy products.

In calendar week 17 (26 April to 2 May 2021), economic activity was 14.7 percent above the level of the same week last year, according to preliminary calculations. Compared with the pre-crisis level, an average week in 2019 as a fixed reference period, the GDP gap is 4.6 percent.

As a result of the COVID-19 pandemic and health policy containment measures, Austria experienced its worst recession since the post-war period in 2020. As the COVID-19 crisis abates, an – in some years strong – economic recovery is expected.