Austrian Economy Stagnates in Q4

2026-03-05 08:42 By Mariene Camarillo 1 min. read

The Austrian economy was flat quarter-on-quarter in Q4 2025, slowing sharply from a downwardly revised 0.3% expansion in the previous quarter and falling short of preliminary estimates of a 0.2% growth.

Net trade dragged on GDP as imports rebounded sharply to 1.7% from -0.7%, while exports rose modestly to 0.3% from -0.1%.

Meanwhile, fixed investments recovered (1.4% vs -2.1%), while household consumption growth also posted an increase (0.5% vs 0.2%).

On the production side, growth reflected contributions from real estate activities (0.4% vs -0.4%), accommodation and food service (3.3% vs -1.2%), and public administration, education, and healthcare (0.8% vs 0.7%).

In contrast, slower expansion was observed in agriculture (2.6% vs 3.3%), construction (-0.8% vs -0.7%), and trade (-0.5% vs -0.2%).

On a yearly basis, GDP grew by 0.6% from an upwardly revised 1.1% in Q3.

For the whole year, Austria’s economy grew 0.6% in real terms, rebounding sharply from a 0.7% contraction in 2024.



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Austrian Economy Stagnates in Q4
The Austrian economy was flat quarter-on-quarter in Q4 2025, slowing sharply from a downwardly revised 0.3% expansion in the previous quarter and falling short of preliminary estimates of a 0.2% growth. Net trade dragged on GDP as imports rebounded sharply to 1.7% from -0.7%, while exports rose modestly to 0.3% from -0.1%. Meanwhile, fixed investments recovered (1.4% vs -2.1%), while household consumption growth also posted an increase (0.5% vs 0.2%). On the production side, growth reflected contributions from real estate activities (0.4% vs -0.4%), accommodation and food service (3.3% vs -1.2%), and public administration, education, and healthcare (0.8% vs 0.7%). In contrast, slower expansion was observed in agriculture (2.6% vs 3.3%), construction (-0.8% vs -0.7%), and trade (-0.5% vs -0.2%). On a yearly basis, GDP grew by 0.6% from an upwardly revised 1.1% in Q3. For the whole year, Austria’s economy grew 0.6% in real terms, rebounding sharply from a 0.7% contraction in 2024.
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The Austrian economy expanded by 0.2% quarter-on-quarter in Q4 2025, easing from 0.4% growth in Q3, but above the expected 0.1% expansion, preliminary estimates showed. Growth slowed for government spending (+0.4% vs +0.7% in Q3), while gross fixed capital formation declined (-0.7% vs -0.1%). Meanwhile, household consumption rebounded (+0.4% vs -0.3%), and net trade contributed positively, with exports rising 0.6% (vs -1.6%) and imports increasing more modestly (+0.2% vs -0.5%). On the production side, growth slowed for information and communication, financial and insurance activities, and real estate (+0.1% vs +0.8%), while accelerating for public administration (+0.9% vs +0.7%). In contrast, construction continued to contract (-0.8% vs -0.5%), and other services declined slightly (-0.4% vs -0.5%). On a yearly basis, GDP rose 0.7%, down from 1.0% in Q3, while full-year growth for Austria came in at 0.6%.
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The Austrian economy expanded by 0.4% quarter-on-quarter in Q3 2025, following a flat reading in Q2 and above the initial estimate of 0.1%. This marked the strongest quarterly expansion so far this year, primarily supported by government spending (unchanged at 0.7% from Q2). Meanwhile, fixed investments declined slightly (-0.1% vs +1.1%), and household consumption fell (-0.3% vs +0.3%). Net trade subtracted from GDP, with exports falling 1.6% (vs +0.2%) and imports declining 0.5% (vs +1.6%). On the production side, growth was driven by real estate activities (+1.8% vs +0.7%), and public administration, education, and healthcare (+0.7% vs +0.2%). In contrast, construction continued its negative trend (unchanged at -0.5%) and accommodation and food service activities declined (-0.9% vs +1.0%). On a yearly basis, GDP rose 0.9%, the strongest growth since Q1 2023, up from a revised 0.4% in Q2, continuing the moderate recovery that began at the end of 2024.
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