Austria’s economy has recorded a fifth consecutive quarter of decline, having failed to gain momentum in the second quarter of 2024 due to ongoing weaknesses in the industrial sector and wholesale trade.
According to Statistik Austria, the real Gross Domestic Product (GDP) fell by 0.6% compared to the same quarter last year, and by 0.4% compared to the previous quarter this year. Per capita GDP dropped by 1.2% relative to the second quarter of 2023, largely due to population growth in Austria.
“Austria’s economy is moving from a recession towards stagnation,” Statistik Austria Director General Tobias Thomas said on Wednesday, adding that a “first glimmer of hope” is emerging for the second half of the year.
In July, industrial sales rose for the first time in 16 months, and industrial production in June surpassed pre-coronavirus levels from 2019.
Despite this, external trade remains weak. From January to May, imports fell by 12.6% compared to the previous year, while exports declined by 5.2%.
In contrast, inflation has continued to ease, with the rate standing at 2.4% in August, just above the Eurozone average. Further slight decreases in inflation are anticipated in the coming months. The European Central Bank (ECB) aims to achieve a 2% inflation rate for member states.