Economic Report Vienna

The continuing weakness of the economy, which has its origins in a pronounced industrial recession, also affected the Vienna economy in the first half of the year. However, with growth of 0.3 percent, real gross value added developed significantly better than in Austria (–1.6 percent). The strongest growth impulses in Vienna came from financial services, the public sector and information and communication technology services. At the same time, significant declines in value added in trade, housing and other industry slowed down the growth of the city's economy. The economic downturn is now also becoming more apparent on the labour market. However, in the first half of the year Vienna was the federal province with the highest employment growth (+1.0 percent compared to the national average of +0.2 percent), which is largely due to the strong localisation of sectors that continue to grow even during the recession. For the year 2024, the forecast for Vienna foresees growth in gross value added of 0.3 percent (Austria –0.6 percent) and employment of 0.9 percent (Austria +0.2 percent). However, the regional unemployment rate will rise to 11.4 percent (Austria: 7.0 percent) due to the continued strong growth in the labour supply.