Austrian Economy Grows for 2nd Straight Quarter

The Austrian economy grew by 0.1% quarter-on-quarter in Q2 2025, matching the pace in Q1, according to preliminary estimates. This marks a second straight quarterly expansion after over two years of stagnation or contraction. Household consumption picked up (0.3% vs 0.1%), while government spending growth slowed sharply (0.2% vs 2.3%). Fixed investment also rebounded (0.3% vs -0.2%). However, net trade dragged on growth, as exports stalled for a second quarter and imports rose (0.9% vs 1.1%). On the production side, manufacturing, energy, and utilities stagnated (-0.1% vs 0.8%), and construction contracted further (-0.5% vs -0.3%). Growth came mostly from services, with gains in information, finance, and real estate (0.2%), administrative services (0.5%), and other services (0.8%), while trade, transport, and hospitality were flat (-0.1%). Year-on-year, GDP rose 0.1%, the first economic growth since the Q1 of 2023, and rebounding from a revised 0.4% decline in Q1.