Austrian economy stagnates in Q2

Vienna: Austria’s gross domestic product (GDP) stagnated in the second quarter of the year, down minus 0%, easing from a 0.2% increase in the first quarter, the flash estimate showed.

The Austrian Institute of Economic Research (WIFO) said on Tuesday that the eighth consecutive quarterly decline in the country’s economy was due to losses in industry and construction by 0.6% and 0.8% on a quarterly basis, respectively.

Value added in trade, transport, accommodation, and food service activities declined minus 0.2%, and in other business activities fell minus 0.9% quarter-on-quarter, official data showed.

Meanwhile, value added in information and communication, financial and insurance activities, as well as real estate and other service activities, was up 2.7% in the second quarter compared to the last.

In the same period, consumer demand from private households decreased by 0.5% compared to the previous quarter, while public consumption increased by 1.4%.

At the same time, exports declined by 2.7% and imports by 3.2%, WIFO said.

Investment demand was down in the second quarter as the gross fixed capital formation stagnated at 0.1% growth from minus 2.1% in the first quarter.