Economic Growth in Austria
Over the past decade to 2022, Austria's economy recorded an average real GDP growth rate of 1.2%, below the Euro Area's average of 1.4%. In 2022, its real GDP growth was 4.8%. For more GDP information, visit our dedicated page.
Austria GDP Chart
Austria GDP Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Economic Growth (GDP, ann. var. %) | 1.8 | -6.5 | 5.0 | 5.4 | -0.8 |
GDP (EUR bn) | 396 | 380 | 406 | 448 | 473 |
Economic Growth (Nominal GDP, ann. var. %) | 3.3 | -3.9 | 6.8 | 10.3 | 5.6 |
Economy records its fastest upturn in over two years in Q3
GDP returns to growth in sequential terms: According to a preliminary reading, the Austrian economy ramped up in the third quarter, expanding 0.3% on a seasonally adjusted quarter-on-quarter basis after stagnating in the second quarter. The reading marked the strongest result since Q2 2022, though it fell short of the Euro area average of 0.4%. On an annual basis, the downturn in economic activity slowed to a crawl, with GDP falling 0.1% in Q3 (Q2: -1.2% yoy).
Broad-based recovery takes hold: Domestically, the quarterly upturn was broad-based and spearheaded by a sharp rebound in private spending, which rose at a near two-year high sequential clip of 0.5% in Q3 (Q2: -0.6% s.a. qoq); lower inflation and laxer financial conditions likely supported household budgets. Moreover, public consumption returned to growth, rising 0.5% in Q3 (Q2: -0.2% s.a. qoq). In addition, fixed investment dropped at a milder rate of 0.3% in Q3, following the 0.7% decrease logged in the previous quarter. On the external front, exports of goods and services growth hit an over two-year high of 1.2% in the third quarter (Q2: -1.0% s.a. qoq). In addition, imports of goods and services rebounded, growing 1.7% in Q3 (Q2: -0.5% s.a. qoq). On an annual basis, economic activity contracted 0.1% in Q3, an improvement from the previous quarter's 1.2% contraction and marking the best result since Q1 2023.
Growth to accelerate but remain muted: Despite Q3’s upturn and an expected further uptick in Q4, the economy is forecast to remain in the doldrums in 2024 as a whole. Moreover, our panel expects growth to remain below its pre-pandemic 10-year average in 2025 due to spillovers from persistent weakness in the German manufacturing sector.
Panelist insight: ING’s Franziska Biehl commented: “Looking ahead, there is little to suggest an imminent trend reversal for the Austrian economy. With the US economy gradually losing steam and the eurozone's economic recovery slowing, both Austrian industry and trade are likely to remain under pressure. However, sentiment has not only been muted in industry lately, but also among consumers. Political uncertainty at home, resulting from the ongoing process of forming a new government, geopolitical risks and the fear of a weakening labour market do not provide a fertile breeding ground for major spending.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Austrian GDP projections for the next ten years from a panel of 22 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Austrian GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Austrian GDP projections.
Want to get access to the full dataset of Austrian GDP forecasts? Send an email to info@focus-economics.com.
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