Economy in Austria: Sixth quarter of the decline!

Economy in Austria: Sixth quarter of the decline!

Austria's economy continues to fight with setbacks, since the gross domestic product (GDP) in the third quarter of 2024 has dropped by 0.6 percent compared to the previous year and 0.1 percent compared to the previous quarter. Again and again the industry is approaching as a particularly affected area, with a decline of 3.7 percent, which is due to the ongoing global economic difficulties, said Thomas at the presentation of the "Austrian Economic Barometer". [vienna.at] reported that there are also direct effects on service sectors, where a decrease of 2.5 percent in economic services and a minus of 1.5 percent was determined.

The construction sector shows a changeable development with a minus of 1.7 percent, but it can also record increasing sales, while the housing is surprising with moderate growth of 1.0 percent. Despite this slight encouragement, sales declines continue, especially in the manufacturing area, where sales were reduced again in October by 1.4 percent. November inflation is expected to remain 1.9 percent and is just below the aim of the European Central Bank of 2.0 percent. The electricity price brake contributes to the damping of inflation, but will no longer be able to stabilize long -term with its expiry at the end of the year.

increased rental prices through the reference interest rate

In another economic context, the change in the reference interest rate also affects rental relationships in Austria. With a current rent of 1.25 percent, landlords are entitled to 6 percent, especially for rental contracts that were concluded between March 2020 and May 2023. This information comes from [bwo.admin.ch], which also indicate that only the net rental interest can be increased, while heating and additional costs are excluded. These adjustments are precise and concern specific contractual relationships, which is equally important for tenants and landlords.