Austria GDP Contracts for First Time Since 2024

Austria’s economy contracted 0.1% quarter-on-quarter in the second quarter of 2026, following a downwardly revised 0.1% expansion in the previous quarter and missing preliminary estimates of no growth. This marked the first contraction since the third quarter of 2024, with higher energy prices weighing on economic activity. “Following 6 quarters of consistently positive economic indicators, we are seeing a slight decline in gross domestic product of 0.1% in the second quarter of 2026 compared with the previous quarter. The economic output was mainly dampened by a further rise in energy prices,” says Manuela Lenk, Director General Statistics of Statistics Austria. On an annual basis, GDP expanded by 0.4% in Q2, easing from a downwardly revised 0.8% growth 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.