Domestic Business Cycle Remains Subdued in the Third Quarter of 2025

Economic momentum remained weak in the third quarter of 2025. According to first calculations, real GDP increased by 0.1 percent compared with the previous quarter (key figure according to Eurostat specifications). Compared with the previous year, this represents an increase of +0.6 percent compared with the third quarter of 2024.

This continued the sluggish economic momentum of the first half of 2025: first quarter +0.2 percent, second quarter ‑0.1 percent according to Statistics Austria (published on 30 September 2025).

Industry (NACE 2008, sections B to E) provided little impetus recently, with the result that value added stagnated in the third quarter compared with the previous quarter. The negative trend continued in the construction industry, with value added declining once again (‑0.5 percent).

Services also remained weak in some sectors. In the trade, transportation, accommodation and food service activities (NACE 2008, sections G to I), value added stagnated almost completely (‑0.2 percent).

Other business activities (NACE 2008, sections M and N; +0.2 percent) and public administration (NACE 2008, sections O to Q; +0.2 percent) performed slightly better. The information and communication, financial and insurance activities, and real estate activities (NACE 2008, sections J to L; +0.3 percent) also had a positive impact. In line with the trend in consumer-related services, private consumer demand was also sluggish (+0.1 percent). Public consumption expenditure increased slightly (+0.2 percent). However, gross fixed capital formation fell by 0.3 percent compared with the previous quarter. Foreign trade also dampened growth recently. Compared with the previous quarter, exports fell by 0.4 percent and imports stagnated.

Important information

The WIFO Flash Estimate is a first estimate for the past quarter and is based on the Quarterly National Accounts of Statistics Austria, which were published on 30 September 2025 up to and including the second quarter of 2025.

The WIFO Flash Estimate for the third quarter of 2025 covers GDP and its main components. These are calculated in the form of seasonally and working day adjusted rates of change compared to the previous quarter (key figure according to Eurostat specifications). The adjusted values for the previous quarters are not revised in this calculation, but continue to correspond to those of the latest publication by Statistics Austria.

On 4 December 2025, Statistics Austria will publish the quarterly data for GDP and main aggregates for the third quarter of 2025 based on more recent data.