Austria Current Account Balance (EUR bn)

GDP contracted by 0.7% quarter on quarter in Q4, contrasting the 0.2% expansion in the preceding quarter. Household consumption contracted faster than in Q3, weighed on by double-digit inflation and downbeat consumer confidence. In contrast, public spending, fixed investment, exports and imports grew in the last quarter of the year. Looking at Q1 2023, our panelists anticipate GDP to decrease at a softer pace, with significant gas storage and mild temperatures having averted a gas supply crisis. In January–February, the manufacturing PMI averaged higher than in Q4, while in January both business and consumer sentiment improved notably. However, elevated interest rates and double-digit inflation will be restricting activity.