Austria: Economic activity accelerates slightly in Q3
October 27, 2016
The Austrian economy picked up some steam in the third quarter of 2016, according to a preliminary estimate released by the Austrian Institute of Economic Research (WIFO) on 27 October. GDP increased a seasonally-adjusted 0.4% in Q3 compared to the previous quarter. The result came in slightly above the result seen in Q2 (+0.3% quarter-on-quarter) and represented the highest reading since Q1 2012.
Q3’s mild acceleration was supported by stronger growth in private consumption and stable total investment, which together offset weaker government consumption. Domestic demand data showed that private consumption had increased 0.4% in Q3, which was up from Q2’s 0.3% expansion. Meanwhile, growth in government consumption inched down from Q2’s 0.3% to 0.2% in Q3. Total investment remained stable at Q2’s 1.2% pace of growth, despite a weakening of fixed investment, which slowed to a 0.8% increase, down from a 1.2% expansion in Q2.
On the external side of the economy, exports of goods and services rose 0.4% quarter-on-quarter, which followed the 0.6% increase registered in Q2. Imports grew 0.7% in Q3, decelerating from Q2’ 1.0% increase. As a consequence, the contribution of the external sector was marginally less negative.
Compared to the same period last year, the economy grew 1.3% in Q3, up from Q2’s 1.2% expansion.
Author: Christopher Mc Innes, Economist