30.01.2025

Economic Momentum was Weak Again in the Fourth Quarter of 2024

WIFO Flash Estimate
According to WIFO's latest Flash Estimate, the domestic business cycle remained at a low level at the end of the year: economic output stagnated in the fourth quarter of 2024 compared to the previous quarter. While industry and construction continued to perform weakly, the business cycle in the consumer-related service sectors improved. Consumer and investment demand also showed signs of stabilisation.

The domestic economy remained sluggish at the end of the year. According to initial calculations, GDP stagnated in real terms in the fourth quarter of 2024 at the level of the previous quarter (key figure according to Eurostat). Following the decline in the two previous quarters (second quarter –0.2 percent, third quarter 2024 –0.1 percent), momentum thus remained weak once again. In a year-on-year comparison, economic output was 0.2 percent below the fourth quarter of 2023.

The annual rate of change for 2024 as a whole, calculated on the basis of seasonally and working day-adjusted values, was thus –1.0 percent.

The industrial economy remained sluggish. In the fourth quarter, value added in this sector (NACE 2008, sections B to E) fell again slightly (–0.6 percent compared to the previous quarter; third quarter –0.2 percent). In construction, it stagnated again (–0.0 percent, after –0.2 percent in the third quarter).

The services sector showed a mixed picture. While value added in trade, transportation, accommodation and food service activities was 0.9 percent higher than in the previous quarter, growth in other business activities (NACE 2008, sections M and N) was slower (+0.4 percent) and fell slightly (–0.5 percent) in information and communication, financial and insurance activities, real estate activities (NACE 2008, sections J to L).

On the demand side, GDP was supported by consumer demand from private households, which increased slightly by 0.3 percent. Investment demand also showed signs of stabilisation (+0.5 percent).

In foreign trade, both exports and imports fell compared to the previous quarter, with the trade balance being negative.

Important information

The WIFO Flash Estimate is a first estimate for the past quarter. It is based on Statistics Austria's quarterly accounts and includes GDP as well as components in the form of seasonally and working day-adjusted rates of change compared to the previous quarter (key figure according to Eurostat specifications).

On 3 March 2025, Statistics Austria will publish the quarterly data for GDP and main aggregates for the fourth quarter of 2024 based on more complete data as well as the preliminary annual data for 2024.