Austria: Economy recovers in Q1 2026
GDP reading: Austria’s GDP increased 0.2% in seasonally adjusted quarter-on-quarter terms in Q1, following a flat reading in the prior quarter.
In annual terms, GDP expanded 0.6% in Q1, following 0.7% growth in the previous quarter.
Drivers: Compared with the previous quarter’s data, readings in Q1 improved for private consumption (+0.8% in seasonally adjusted quarter-on-quarter terms vs +0.2% in Q4), government consumption (+0.4% vs -0.4% in Q4), fixed investment (+1.0% vs -2.1% in Q4), exports of goods and services (+0.1% vs -0.1% in Q4) and imports of goods and services (+0.9% vs -0.7% in Q4).
Panelist insight: On the 2026 outlook, EIU analysts said:
“We forecast that real GDP growth will accelerate only modestly, from 0.6% in 2025 to 0.8% in 2026, as the unfolding conflict in the Middle East pushes up inflation and weighs on consumer demand (which we had previously been expecting to drive stronger growth this year). Risks to the outlook remain to the downside.”