Austria: Q2 GDP growth revised downward
September 10, 2013
In Q2, GDP increased 0.1% over the previous quarter in seasonally and working-day adjusted terms, according to revised data released by the Austrian Institute of Economic Research (WIFO). The reading was revised down from the previous estimate (+0.2% quarter-on-quarter) and followed an expansion of 0.1% in the first quarter. On an annual basis, GDP increased 0.2% in Q2, which contrasts the 0.3% decrease recorded in Q1.
Revised data showed that gross fixed investment contracted 0.9% over the previous period, below the 0.5% drop initially reported. Meanwhile, private consumption showed zero growth in Q2 and government spending expanded 0.3% over the previous quarter. Both readings remained unchanged compared to figures previously estimated.
On the external front, exports of goods and services grew 0.3% in Q2 (Q1: +0.3% qoq), while imports contracted 0.1% (Q1: -0.4% qoq) As a result, the external sector's net contribution to overall economic growth fell from 0.4 percentage points in Q1 to 0.2 percentage points in Q2.
The Austrian National Bank (OeNB) expects the economy to grow 0.3% this year. For 2014, the OeNB sees economic growth at 1.5%. FocusEconomics panelists are more optimistic than the Bank and project the economy to grow 0.8% in 2013, which is unchanged from last month's estimate. For 2014, panelists expect the economy to grow 1.7%.
Author: Ricardo Aceves, Senior Economist