The Austrian economy contracted 0.6% in the second quarter of 2024 on an annual basis, the latest data from Statistics Austria showed.
“Austria’s economy is sliding from recession towards stagnation. In the second quarter of 2024, gross domestic product fell for the fifth time in a row, declining by 0.6% compared to the same quarter of the previous year. Industrial production and wholesale trade once again recorded declines, although these were not as sharp as in the previous quarter. Per capita prosperity in terms of GDP also fell and was 1.2% lower in the second quarter of 2024 than in the same quarter of the previous year,” said Statistics Austria Director General Statistics Dr. Tobias Thomas at the latest edition of the Austrian Economic Barometer press conference.
Although the 0.6% decline in GDP was less pronounced than in previous quarters, it was still significant. The declines in manufacturing (−3.9%) and trade (−2.3%) were again mainly responsible for this, even if they were less pronounced than in the first quarter. The decline in GDP is also reflected in the number of hours worked, which fell by 1.6 % compared to the second quarter of the previous year.
GDP down 0.4% q-o-q in Q2 2024
Compared to the first quarter of 2024, real gross domestic product (GDP) decreased by 0.4% adjusted for seasonal and calendar effects. Household consumption fell 1.1% over the quarter, which mostly negatively influenced the GDP. Meanwhile, gross capital formation recovered notably by 7.2%. Net foreign demand was not favorable, as exports were almost unchanged over the quarter, while imports increased by 0.6%. In the entire period from January to May 2024, imports were down 12.6% and exports 5.2% on the same period of the previous year. Compared to the pre-crisis level May 2019, May 2024 saw growth of 11.7% in imports and 15.8% in export.
