Austria’s gross domestic product remains stagnant in Q2
Date
7/30/2024 9:37:21 AM
(MENAFN) Austria’s gross domestic product (GDP) remained stagnant in the second quarter of the year, with a 0 percent change compared to the previous period. This marks a notable shift from the 0.2 percent increase observed in the first quarter, according to the flash estimate released by the Austrian Institute of Economic Research (WIFO) on Tuesday. The stagnation in GDP represents the eighth consecutive quarter of economic decline for Austria, reflecting persistent challenges in key sectors.
The decline in Austria's GDP is largely attributed to losses in industry and construction. Industrial output decreased by 0.6 percent, while construction activity fell by 0.8 percent on a quarterly basis. Additionally, value added in trade, transport, accommodation, and food service activities dropped by 0.2 percent, and other business activities saw a decline of 0.9 percent. These reductions have significantly impacted overall economic performance, contributing to the stagnation.
Despite these declines, certain sectors exhibited growth during the second quarter. Value added in information and communication, financial and insurance activities, as well as real estate and other service activities, increased by 2.7 percent compared to the previous quarter. This growth indicates that some areas of the economy are performing well, counterbalancing the downturn experienced in other sectors.
Consumer demand also saw mixed results. Private household consumption decreased by 0.5 percent compared to the previous quarter, while public consumption increased by 1.4 percent. Exports and imports both experienced declines, with exports falling by 2.7 percent and imports decreasing by 3.2 percent. Investment demand remained subdued, with gross fixed capital formation showing only a minimal growth of 0.1 percent, a significant improvement from the 2.1 percent decline recorded in the first quarter.
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