Austria: GDP expansion in third quarter confirmed
December 10, 2013
In Q3, GDP increased 0.2% 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 in line with the previous estimate and represents an improvement over the unchanged figure observed in the second quarter. On an annual basis, GDP increased 0.5% in Q3 and came in above the flat reading recorded in Q2.
Revised data showed that private consumption increased 0.1% over the previous quarter, maintaining the growth rate observed in Q2. Government spending accelerated from a 0.2% increase in Q2 to a 0.4% expansion in Q3. In addition, gross fixed investment expanded 0.2% over the previous period, which was slightly above the 0.1% increase recorded in Q2.
On the external front, exports of goods and services grew 0.4% in Q3 (Q2: +0.3% quarter-on-quarter), while imports increased 0.2% (Q2: +0.1% qoq). The external sector's net contribution to overall economic growth stabilized at Q2's 0.1 percentage points in Q3.
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%, which is also unchanged over the previous month's forecast.
Author: Ricardo Aceves, Senior Economist