Austria GDP Grows 0.2% in Q1

Austria's economy stagnated quarter-on-quarter in Q2 2026, after expanding 0.2% in each of the previous two quarters, according to preliminary estimates. The stagnation reflected higher oil prices triggered by the Iran conflict, which interrupted the economic recovery. Household consumption weakened (-0.1% vs. +0.2% in Q1), while government spending also edged down (-0.1% vs. +1.6%). Gross fixed capital formation rose 0.4% after being broadly unchanged in the previous quarter. Net trade provided little support, with exports increasing 0.5% and imports rising 0.6%. On the production side, industrial output weakened (-0.1% vs. +1.3%) and construction contracted for a second straight quarter (-0.4% vs. -0.6%), while trade and tourism-related services recovered (+0.3% vs. -0.8%). Information, financial, insurance, and real estate services remained resilient (+0.8%). On an annual basis, GDP expanded 0.8%, easing from 0.9% in Q1.

The Austrian economy expanded 0.2% quarter-on-quarter in Q1 2026, confirming preliminary estimates and unchanged from the revised figure in the previous period. Growth moderated in household consumption (0.1% vs 0.4% in Q4), while public consumption rose significantly by 1.6%. Fixed investment also stabilized after a 0.9% contraction in the prior period. Net trade weighed on GDP as exports fell 0.7%, outpacing a 0.5% decline in imports. On the production side, growth picked up in manufacturing (1% vs 0.3%), providing a significant growth impetus, while activity also accelerated in real estate (1% vs 0.3%). Meanwhile, output contracted in agriculture, forestry and fishing (-2.2% vs 3.0%), construction (-0.6% vs -0.4%), wholesale and retail trade (-0.2% vs -0.5%), and transportation (-0.9% vs 0%). On a year-on-year basis, GDP expanded 0.9%, revised higher from an initial estimate of 0.6% and following 1% growth in the prior quarter.

The Austrian economy expanded by 0.2% quarter-on-quarter in Q1 2026, rebounding slightly from stagnation in the previous quarter, according to preliminary estimates. Consumption supported economic activity, with household consumption (including non-profit institutions serving households) rising by 0.8% (vs 0.2% in Q4 2025), while government spending recovered (0.4% vs -0.4%). Gross fixed capital formation also expanded 1% (vs -2.1%). Meanwhile, net trade continued to weigh on the GDP, as exports were broadly flat (0.1% vs -0.1%), while imports grew 0.9% (vs -0.7%). On the production side, output rose for mining, manufacturing, energy and water supply, waste management (0.4% vs -1.4%), Information and communication, financial and insurance services, real estate and housing activities (0.2% vs 0.7%), and public administration (0.2% vs 0.8%), while construction (-0.5% vs -0.8%) mainly declined. On a yearly basis, GDP grew by 0.6% in Q1, following a 0.7% expansion in the preceding period.