Purchasing Power in Austria stagnates

A very low inflation rate, a minor tax reform and sinking fuel prices leave the Austrians with more money in their purse. The new Purchasing Power Data Edition 2009 from RegioData Research show that overall the purchasing power in Austria is mostly immune to the crisis.

RegioData is compiling and calculating Purchasing Power Data in Austria since 1990. A look at the past 20 years shows that the various economic crises and recession periods only lead to short term losses in purchasing power – around 1 to 2%.

In the long term economic crises only have slight influences on the purchasing power of the population. As Mr Mark Ruhsam (Marketing Manager for RegioData Research) emphasises: “The trend is definetely upwords – slowly but steady.”

That the inflation rate for 2009 will be lower than before has a positive effect on the purchasing power in Austria. Whereas in 2008 the average Austrian had 17.750 Euro at his or her disposal it will be around 18.000 Euro in 2009. For 2010 RegioData offers a forecast: “We assume that the average purchasing power will be stagnating next year. The Austrian population will have nominal more money (approx. +200,- €/year) but because of an again slightly rising inflation hardly anything of it will remain.”

When looking at the regional distribution at the level of federal regions the differences in purchasing power in Austria are minor. Whereas the average Viennese has around 18.660,- € per year at his or her disposal (after deducting all taxes and social insurances) a person from Burgenland only has around 16.650,- €.

Although there are slight declines and increases there is no shift within the index ranking. Five regions had to sustain a decline, three could gain an increase and Burgenland brings up the rear with an index of 93,8.

In the long term regions like Vienna and Salzburg are losing, Lower Austria however is on the rise – although this is mostly due to the affluent suburbs around Vienna. The municipalities around Vienna, such as Gießhübl, Brunn am Gebirge or Perchtoldsdorf still show increasing purchasing power. “This is mostly due to the continuing movement of wealthy parts of the population who work in Vienna but prefer to live in the countryside” Mr. Ruhsam explains.