Economic Report Vienna

Business Cycle Report Autumn 2021

The Viennese economy recovered quickly during the second pandemic year after the deep slump in the year of crisis 2020. Supported by rebound effects in consumption and strong international demand impulses (also) for services, regional gross value added increased by 4.3 percent in real terms in the first half of 2021, and regional growth is expected to have reached 5.0 percent in 2021 as a whole. In Vienna, mainly triggered by upward trends in the (more labour-intensive) service sectors, this recovery allowed for a striking and in national comparison high employment dynamic (2021: Vienna +3.2 percent, Austria +2.4 percent). Thus, the unemployment rate is expected to reach 12.7 percent in 2021, after 15.1 percent in 2020. According to the WIFO forecast, the upward trend is expected to continue in 2022, which will also slightly improve the labour market situation in Vienna. A further increase in regional value added of 4.1 percent in real terms and in Viennese employment of 1.8 percent is to be expected; the unemployment rate should thus fall further to 12.1 percent and only marginally exceed its pre-crisis level.