Economic Development in the Third Quarter Marked by Catch-up Effects. Business Cycle Report of November 2020

The dynamics of the global economy continue to be determined by the COVID-19 pandemic and the measures taken to contain it. Following the GDP slump in the USA and the euro area in the second quarter, a rebound was recorded in the third quarter. Confidence indicators are still at a low level, but signal signs of recovery in industry. Economic output in Austria also grew significantly in the third quarter 2020. Catch-up effects were reflected in particular in an increase in consumption by private households and in the value added in the service sectors. The reduction in employment slowed down, but according to preliminary figures was still 1 percent year-on-year in October. Inflation rose slightly in September.