Austria: Economy returns to slight growth in Q1

According to preliminary estimates released by the Austrian Institute of Economic Research (WIFO) on 30 April, GDP growth inched up in the first quarter of 2015. GDP, adjusted for seasonal and working-day factors, grew 0.1% in Q1 compared to the previous quarter. This was above the flat growth recorded in both Q3 and Q4 2014.

According to WIFO, Q1’s growth reflected an improvement in domestic demand. Fixed investment improved from a 1.2% contraction in Q4 2014 to a 0.6% fall in Q1. Meanwhile, private and government consumption remained lackluster in Q1, rising 0.1% and 0.3%, respectively over the previous quarter. Both readings maintained the pace observed in the previous quarter.

In the external sector, exports of goods and services rose 0.7% over the previous quarter, which followed the 0.6% increase registered in Q4. Imports expanded 0.8% in Q1, which contrasted the 0.1% contraction recorded in Q4.

More detailed data will be released on 29 May.

The Austrian National Bank (OeNB) expects the economy to grow 0.7% in 2015. For 2016, the Bank sees economic growth picking up to 1.6%. FocusEconomics panelists are less optimistic and project that the economy will grow 0.8% in 2015, which is unchanged from last month’s estimate. For 2016, panelists expect the economy to grow 1.5%.