July 27, 2017
According to a flash estimate released by the Austrian Institute of Economic Research (WIFO) on 27 July, the economy maintained a strong pace of growth in Q2. GDP increased a seasonally-adjusted 0.8% from the previous quarter, mirroring Q1’s upwardly-revised outturn (previously reported: +0.7% quarter-on-quarter). Compared to the same period last year, the economy grew 2.2% in Q2, which was below Q1’s 2.5% rise.
Q2’s reading was supported by still robust, if somewhat weaker, domestic demand growth and a strong net contribution from the external sector. Government consumption growth was stable (Q2: +0.1% qoq), while household consumption growth edged down a notch to +0.3% qoq (Q1: 0.4% qoq). Fixed investment slowed more substantially, albeit from a high level: Fixed investment growth was clocked at 1.2% qoq in Q2, down from 1.7% qoq in Q1.
On the external side of the economy, exports of goods and services rose 2.4% (Q1: 1.90.0% qoq), an over five-year high, though imports also accelerated (Q2: 2.1% qoq; Q1: 1.9% qoq). Nonetheless, the external sector once again made a positive contribution to GDP growth, evidence that Austria is taking full advantage of the upswing in the European economy that is currently underway.
Author: Christopher Mc Innes, Economist