Economic Report Vienna

In an Austria-wide economic downturn driven by a pronounced industrial slowdown, Vienna's services-oriented city economy performed comparatively well in 2023. Real gross value added stagnated at ±0.0 percent, with growth stimuli from the fields of information and communication, financial services, public administration, and other services as the main pillars. By contrast, retail trade and manufacturing in particular contracted significantly. The Viennese labour market followed the slowing business cycle over the course of the year, although employment increased by 1.8 percent, considerably faster than the national average (+1.2 percent). The regional unemployment rate rose slightly compared to the previous year to 10.6 percent (+0.1 percentage points). The forecast for Vienna in 2024 expects only modest growth in gross value added (+0.9 percent) and employment (+1.0 percent), which will nevertheless remain slightly above the national average. However, Vienna's unemployment rate will continue to rise to 10.9 percent.