Austria: Economy enters technical recession in Q3
GDP fell 0.5% on a seasonally adjusted quarter-on-quarter basis in the third quarter, improving from the 1.1% contraction recorded in the second quarter but still bringing the economy into a technical recession. This revised reading follows the 0.6% contraction recorded in an earlier preliminary reading.
Household spending dropped at a quicker rate of 1.2% seasonally adjusted quarter on quarter in Q3, after a 0.4% contraction in Q2. Public spending deteriorated, expanding 0.6% in Q3 (Q2: +2.0% s.a. qoq). Meanwhile, fixed investment fell at a quicker rate of 1.6% in Q3, compared to the 1.5% decrease in the previous quarter. On the external front, exports of goods and services growth hit an over one-year high of 2.4% in the third quarter (Q2: -3.4% s.a. qoq). In addition, imports of goods and services rebounded, growing 1.2% in Q3 (Q2: -0.7% s.a. qoq).
On a seasonally adjusted annual basis, GDP declined 1.6% in Q3, below the 1.3% contraction recorded in the previous quarter and marking the largest drop since Q1 2021.