A Modest Recovery in the Industrial Sector Amid Weak Exports and Investment-driven Imports

In 2025, the international environment for Austria's foreign trade was characterised by a sluggish recovery in demand, intense competition with China and persistent cost pressures. In Germany – Austria's most important export market – industrial activity remained weak until late autumn. In addition, the erratic tariff policy of the USA weighed particularly heavily on shipments of medical and pharmaceutical products. Against this backdrop, Austrian exports of goods declined despite a noticeable upturn towards the end of the year, whilst imports rose sharply due to rising investment in equipment, buoyant demand for passenger cars and exceptionally high imports of gold and pharmaceutical products. Although the terms of trade improved once again, the opposing trends in export and import volumes resulted in a trade deficit of 6.6 billion € following the surplus in 2024. Industrial activity improved across all sectors over the course of 2025 but remained below average given the declines of previous years, as evidenced by capacity utilisation figures. Insufficient demand remained the most frequently cited obstacle to production. Investment in equipment expanded strongly, whilst investment in intangible assets contracted slightly.