The Austrian economy hardly grew at all in the second and third quarters of 2019. The main reason for this is the weakness of industry, which depends to a large extent on the less dynamic German economy. A weak export business and a high degree of uncertainty caused by the international trade conflicts and political risks obviously leave their mark on economic growth. The service sector was able to achieve a solid increase in value added despite the deterioration in sentiment.
The picture is unlikely to change much in the near future. The mood in the manufacturing sector is still noticeably depressed, but at least there is hope for a gradual stabilization of the industrial economy. By contrast, the services sector is likely to maintain its growth course. It could, for example, benefit from the good labour market situation and a strong tourism sector.
Only in the course of the coming year will the economic momentum increase noticeably again. However, this presupposes in particular that the industry will actually be able to support growth again by then. In the long term, politicians will also be in demand: there is a need for action in the comparatively high taxes and in the pension system. The new government still to be formed must tackle reforms here.