Austria: Economy loses steam in Q2
August 29, 2016
The economy lost steam in the second quarter of 2016, according to the revised data released by the Austrian Institute of Economic Research (WIFO) on 29 August. GDP increased a seasonally-adjusted 0.3% in Q2 compared to the previous quarter, which is unchanged from last month’s flash estimate. The result came in slightly below the results seen in Q1 2016 and Q4 2015 (0.4% quarter-on-quarter in both periods).
Q2’s mild expansion was supported by steady growth in private consumption and a stronger expansion in total investment. Domestic demand data showed that private consumption had increased 0.3% in Q2, which matched the pace of growth seen in Q1. Meanwhile, growth in government consumption inched down from Q1’s 0.3% to 0.2% in Q2. Total investment accelerated from a revised 0.4% increase in Q1 to a revised 0.7% expansion in Q2 (previously reported: +0.2% and +0.6%, respectively), due to a strengthening of fixed investment, which remained steady at a revised 1.0% (previously reported: Q2: +0.8% qoq; Q1: +0.9% qoq)
On the external side of the economy, exports of goods and services rose a revised 0.7% quarter-on-quarter, which followed the revised 0.4% increase registered in Q1 (previously reported: 0.5% and 0.3%, respectively). Imports grew a revised 0.9% in Q2, accelerating from Q1’s 0.5% increase (previously reported: +0.6% in Q2 and +0.3% in Q1). As a consequence, the contribution of the external sector was marginally negative.
Compared to the same period last year, the economy grew 1.2% in Q2, unchanged from the preliminary estimate and down from Q1’s revised 1.6% expansion (previously reported: +1.2% year-on-year).
Author: Christopher Mc Innes, Economist