Mainland China`s economic slump impacts on the Austrian economy

Mainland China is Austrias third largest trading partner, after Germany and Italy. Therefore, once there is an economic problem in mainland China, Austria will get affect significantally. In recent years, mainland Chinas economy has shifted from rapid growth to faltering, and geopolitical conflicts with other countries have made the worlds weakening economy even worse.
There are three aspects that Austria has been impacted, according to analysis of Harald Oberhofer, a Wifo scholar at the Austrian:

  1. Direct impact: China domestic demand has been decreased, cause the result of Austria`s export dropped significantly. According to data from the Austrian Statistics Office, 6.5% fell in the first half of 2023, while imports fell by 3.9%.
  2. Indirect impact: Germany`s exports to China have declined sharply, and the economy may fall into negative growth. Austria is an important supply partner of German, as a result it highly possible been negatively affected by its recession.
  3. Multiplying impact: If the economies China and EU weaken at the same time, and Austria is in a higher position in the Eurozone, which expansion will have a multiplied negative effect on Austria.