Austria: GDP growth remains stable in Q4
January 31, 2017
According to a flash estimate released by the Austrian Institute of Economic Research (WIFO) on 15 February, the Austrian economy grew at a stable pace in the final quarter of 2016. GDP increased a seasonally-adjusted 0.5% in Q4 compared to the previous quarter, in line with Q3’s GDP outturn.
Q4’s expansion was supported by steady growth in domestic demand. Private consumption grew 0.5% over the previous quarter, matching Q3’s expansion and therefore maintaining the fastest pace of growth since Q3 2012. Government consumption growth inched up a notch, accelerating to 0.3% (Q3: +0.2% quarter-on-quarter). Total investment growth slowed, falling to 0.9% after growing a solid 1.2% in Q3. Total investment was dragged down by sagging fixed investment, which expanded 0.1% in Q4 (Q3: +0.4% qoq).
On the external side of the economy, exports of goods and services rose 0.4% qoq, which followed the 0.2% increase registered in Q3. Imports grew 0.5% in Q3, accelerating from Q3’s 0.4% expansion. As a consequence, the contribution of the external sector was nil.
Compared to the same period last year, the economy grew 1.8% in Q4, which was above Q3’s 1.3% rise and the fastest pace of growth since Q3 2011. For 2016 as a whole, GDP growth came in at 1.5%, above the 1.0% seen in 2015.
Author: Christopher Mc Innes, Economist