Austria: Revised figures show GDP growing
December 10, 2012
In the third quarter, GDP rose a seasonally and working-day adjusted 0.1% over the previous quarter, according to revised data published by the Austrian Institute of Economic Research (WIFO). The reading was revised upwards from the 0.1% contraction estimated on 15 November, thus mirroring the 0.1% increase recorded in the second quarter. Compared to the same period the previous year, GDP increased 0.7% in Q3, which was up from both the flat reading previously estimated and the 0.1% increase recorded in Q2.
The revision in the third quarter mainly reflected an improvement in the external sector's net contribution to overall growth. Exports of goods and services expanded 1.0% in Q3, which was a tad up from the 0.9% increase previously estimated. Meanwhile, imports grew 0.8% in the third quarter, which was revised down from the previous 1.2% estimate. Consequently, the external sector added 0.2 percentage points to overall economic growth, contrasting the 0.1 percentage-point detraction previously reported.
On the domestic side of the economy, growth in private consumption was flat in the third quarter while government spending increased 0.5% in Q3. Both readings matched the initial estimate. In contrast, gross fixed investment declined 0.1% in the third quarter, which was slightly up from the previously estimated 0.2% contraction.
In its biannual economic outlook report for December, the Austrian National Bank (OeNB) expects the economy to have grown 0.4% in 2012. For 2013, the Bank cut significantly its growth projections and now expects the economy to expand 0.5%, which is well below its previous 1.7% estimate. For 2014, the Bank sees economic growth rising to 1.7%.
Author: Ricardo Aceves, Senior Economist