In the first quarter of 2024, the Austrian economy saw a slight increase in domestic economic output by 0.2 percent compared to the previous quarter. However, this growth was not enough to offset the year-on-year decline of 1.3 percent. The industrial economy remained weak while consumer-related services showed positive momentum, with private consumption supporting the economy but investment demand falling.
The construction industry continued to decline in the first three months of the year, with a 1.1 percent decrease in value added. On the other hand, trade, transport, accommodation, and catering saw a 0.8 percent increase in value added. Consumer demand from private households increased by 1.3 percent, but gross fixed capital formation fell by 2.7 percent.
Foreign trade momentum decreased in the first quarter as exports decreased by 0.3 percent and imports by 1.5 percent despite some support from exports to GDP according to the Austrian Institute for Economic Research.
Overall, the Austrian economy experienced mixed results with some sectors showing growth while others were in decline. While construction and investment demand were areas of concern, consumer demand and foreign trade provided some support to GDP. Continued monitoring of these trends will be important in assessing the overall health of the economy.
In summary: The Austrian economy experienced mixed results in Q1 2024 with some sectors showing growth while others were in decline due to weak industrial performance and declining investment demand despite strong consumer-related services and positive momentum from private consumption.
Additionally, foreign trade also had negative impact on GDP due to declining exports and imports despite support from exports to GDP according to AIER.