Austrian Economy Extends Growth in Q2

The Austrian economy expanded by 0.3% quarter-on-quarter in Q2 2025, beating initial estimates of 0.1% and up from an upwardly revised 0.2% in the previous quarter. This marked the second consecutive quarterly expansion after more than two years of stagnation or contraction, primarily driven by fixed investments (0.7% vs -0.3% in Q1), led by significant growth in machinery and transport equipment. Net trade also contributed positively to the GDP, with exports rising 1% (vs 0.1%) and imports dropping 0.6% (vs 0.2%). On the other hand, household consumption fell (-0.2% vs 0%), while government spending growth slowed sharply (0.1% vs 2.3%). On the production side, growth was driven by gains in industry (manufacturing, including mining, energy and water supply), business-related services, and the public sector. On a yearly basis, GDP fell by 0.1%, the softest in nine periods of decline, slowing from a 0.5% contraction in the preceding quarter.