Austria: Economic growth improves somewhat in Q2
August 14, 2014
In the second quarter, GDP increased a seasonally and working-day adjusted 0.2% over the previous quarter, according to preliminary estimates released by the Austrian Institute of Economic Research (WIFO) on 14 August. The reading was a notch up from the 0.1% increase observed in the first quarter. Compared to the same quarter last year, GDP accelerated from a 0.1% increase in Q1 to a 0.6% expansion in Q2.
Q2’s result showed that private consumption maintained the weak pace observed in the first quarter, increasing a lackluster 0.1%. Government spending grew 0.4% over the previous period, which followed a similar expansion in Q1. Meanwhile, gross fixed investment deteriorated in Q2: it swung from a 0.6% increase in Q1 to a 0.3% contraction in Q2.
On the external front, exports of goods and services picked up somewhat from a 0.3% increase in Q1 to a 0.5% expansion in Q2. Imports grew also 0.5% in Q2, which was slightly below the 0.6% growth registered in the previous quarter. Net exports did not contribute to overall economic growth in Q2, but were an improvement compared to the 0.1 percentage-point detraction tallied in Q1.
Author: Ricardo Aceves, Senior Economist