Austrian Economy Grows 0.3% in Q3
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- 31 Oct 2024
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Austria's economy showed signs of recovery in the third quarter, expanding by 0.3% sequentially, according to a flash estimate from the WIFO economic institute. This growth follows a period of stagnation in the previous quarter, indicating a positive shift in economic activity.
On the expenditure side, both household consumption and general government consumption increased by 0.5%, contributing positively to the economic growth. However, gross fixed capital formation declined by 0.3%, suggesting that investments in physical assets were weaker, potentially reflecting caution among businesses amid ongoing economic uncertainties. Additionally, the rise in imports outpaced exports, which may have further impacted the trade balance.
Year-over-year, Austria's GDP decreased at a slower rate of 0.1% in the third quarter, a notable improvement from the 1.2% decline recorded in the second quarter. This deceleration in the annual contraction suggests that the economy is stabilizing, albeit still facing challenges.
In related data, Statistics Austria reported that producer prices fell at a faster annual rate of 2.6% in September, following a 2.0% increase in August. On a monthly basis, producer prices dropped by 0.2%, indicating easing inflationary pressures that could have implications for future consumer prices.
Overall, the 0.3% growth in Austria's economy during the third quarter reflects a modest recovery, driven by increased household and government consumption. While the decline in gross fixed capital formation and the trade balance presents challenges, the slower annual GDP contraction signals potential stabilization. Monitoring these trends will be crucial for understanding the trajectory of Austria's economic recovery.
