30.07.2026

Domestic Economy Stagnated in the Second Quarter of 2026

WIFO Flash Estimate

According to the latest WIFO Flash Estimate, Austrian economic output stagnated in the second quarter of 2026. After GDP had grown by 0.2 percent in real terms in each of the two previous quarters compared with the preceding quarter, the sharp rise in oil prices caused by the war in Iran weighed on the domestic economy in the second quarter and halted the economic recovery.

According to preliminary calculations, real GDP in the second quarter of 2026 was roughly on a par with the previous quarter (+0.0 percent; first quarter +0.2 percent; seasonally and calendar adjusted). Year-on-year, this represents growth of +0.8 percent compared with the second quarter of 2025.

Against the backdrop of the war with Iran, industrial activity was weak in the second quarter. Value added in industry (NACE 2008, sections B to E) stagnated (–0.1 percent, following +1.3 percent in the first quarter of 2026). In the construction sector, the downward trend in value added continued (–0.4 percent, following –0.6 percent in the first quarter).

The picture was mixed across the service sectors. Whilst value added fell in other business activities (NACE Rev. 2, sections M and N; –0.4 percent), a slight increase was recorded in the wholesale and retail trade, transportation, accommodation and food service activities sector (NACE Rev. 2, sections G to I; +0.3 percent). Performance was stronger in the information and communication, financial and insurance services, and real estate activities sectors (NACE 2008, sections J to L; +0.8 percent).

Consumer demand from private households (including non-profit organisations serving households) was weak (–0.1 percent on the previous quarter), whilst public consumption also remained virtually stagnant (–0.1 percent).

Gross fixed capital formation, by contrast, recorded slight growth of 0.4 percent in the second quarter compared with the previous quarter (first quarter 0.0 percent). There was little impetus from foreign trade (exports +0.5 percent, imports +0.6 percent).

Important information

The WIFO Flash Estimate is an initial estimate for the previous quarter. It is based on the quarterly accounts from Statistics Austria and covers GDP as well as its main components in the form of seasonally and calendar-adjusted quarter-on-quarter rates of change compared to the previous quarter (key figure according to Eurostat specifications).

On 1 September 2026, Statistics Austria will publish the quarterly data for GDP and the main aggregates for the second quarter of 2026, based on more data.