
Domestic Economy Again Weak in the Third Quarter of 2024
The domestic economy was again weak in the third quarter. According to initial calculations, GDP was once again below the previous year's volume (–0.1 percent, seasonally adjusted). Compared to the previous quarter, however, there was a stabilisation, with economic output growing by 0.3 percent (seasonally adjusted, key figure according to Eurostat).
After the domestic economy had already recorded significant losses at the end of 2023, the economic activity was weak in the first quarter (+0.2 percent) and the second quarter of 2024 (–0.0 percent) (values according to Statistics Austria's general revision, see box).
Industry and construction are still in recession. The decline continued in the third quarter. In industry (NACE 2008, sections B to E), value added fell by 0.3 percent (second quarter –2.2 percent) compared to the previous quarter. In construction, a decline of 0.3% (second quarter –0.1 percent) was recorded.
Service production also remained largely weak. Value added stagnated in trade, transportation, accommodation and food service activities (NACE 2008, sections G to I) (–0.1 percent), as well as in information and communication, financial and insurance activities and real estate activities (NACE 2008, sections J to L), although developments in the banking and insurance sector supported value added.
Other business activities (NACE 2008, sections M and N; +0.5 percent) and other service activities (NACE 2008, sections R to U; +0.7 percent) had a positive effect. Value added also increased in public administration (NACE 2008, sections O to Q) (+1.0 percent).
Consumer demand from private and public households had a stabilising effect (+0.5 percent each), following a decline in the second quarter. However, private consumption remains very weak and below the same quarter of the previous year. Gross fixed capital formation was reduced by 0.3 percent compared to the previous quarter.
There have recently been signs of stabilisation in foreign trade. Compared to the previous quarter, both exports (+1.2 percent; second quarter –1.0 percent) and imports (+1.7 percent; second quarter –0.5 percent) increased.
Important information:
The WIFO Flash Estimate is a first estimate for the past quarter. It is based on the Quarterly National Accounts published by Statistics Austria on 18 October 2024, including the second quarter of 2024. The values of the national accounts were subject to a general revision, whereby the entire time series up to 1995 were revised. For more information, see: https://www.statistik.at/fileadmin/pages/224/Informationen_zur_Benchmarkrevision_der_VGR_2024.pdf.
The WIFO Flash Estimate for the third quarter of 2024 includes GDP and components in the form of seasonally and working day-adjusted rates of change compared to the previous quarter (key figure according to Eurostat), as published by Statistics Austria.
On 4 December 2024, Statistics Austria will publish the quarterly data for GDP and main aggregates for the third quarter of 2024 based on more complete data.