GDP in 2020: Historic decline of 6.6%

The decline in the producing sector (-5.8% in real terms) is less severe, than in the service sector (-6.7% in real terms). In particular, government-related services (e.g. public administration, human health and education) supported the service sector. Compared to other industries, the decrease of construction (-2.3% in real terms) was moderate. Manufacturing and electricity were hit harder with a drop by 7.2% and 7.7% in real terms respectively. Due to lockdowns, accommodation and food service activities (-35.2% in real terms), arts, entertainment and personal services (-19.6% in real terms) as well as transportation (-15.5 in real terms) suffered the strongest losses. Trade dropped by 5.6% in real terms.

The crisis also affected gross fixed capital formation, which fell by 4.9% in real terms in 2020. With the exception of intellectual property products (+1.7% in real terms), all investment categories recorded a decline. Capital formation of transport equipment dropped by 14.2% in real terms, followed by capital formation in machinery (-12.1% in real terms).

Consumption expenditures also suffered massive losses during 2020 (-9.6% in real terms. This was mainly due to the heavy losses in consumption of private households (-9.8% in real terms). As on the production side, services were mostly affected (accommodation and food services, transportation, personal services). In contrast, durable consumption goods and digital services increased. Government consumption expenditure grew by 0.8% in real terms due to the acquisition of goods associated with COVID-19 containment measures.

The performance of manufacturing is also reflected in foreign trade. Export of goods declined by 6.9% in real terms, import of goods declined by 7.4% in real terms. Again, services were affected stronger. Both exports (-18.8% in real terms) and imports of services (-17.4% in real terms) dropped sharply, considerably due to the international travel restrictions.

The implicit price index of GDP (derived from the GDP at current prices and at constant prices respectively, based on previous year’s prices) was 101.1. Hence, the overall price development was somewhat below the change of the consumer prices index (+1.4%).