GDP Grew in the Second Quarter

Austria's economy slightly increased in the 2nd quarter of 2025. The real gross domestic product (GDP) rose by 0.3 percent compared to the 1st quarter, adjusted for seasonal and calendar effects. Compared to the same quarter of the previous year, the GDP was 0.1 percent lower. Thus, the recovery course since the beginning of the year continues, but economic performance remains below the previous year's level.

"For the second time in a row," economic performance is above the previous quarter, but "due to the restrained or still declining dynamics in individual economic sectors as well as in consumption and foreign trade," a stable growth phase cannot yet be assumed, according to Statistics Austria Director General Manuela Lenk.

Decline in Accommodation and Gastronomy

Positive impulses came - as at the beginning of the year - from the industry: The production of goods including mining as well as energy and water supply increased by 1.0 percent compared to the previous quarter. Business-related services (+0.5 percent) as well as public administration, education, and health services (+0.6 percent) also supported. There were setbacks in accommodation and gastronomy (-1.2 percent), transport (-1.4 percent), and construction (-0.4 percent). Foreign trade contributed little: Exports rose by only 0.1 percent, while imports fell by 0.6 percent.

Private consumption expenditures decreased by 0.2 percent compared to the 1st quarter; public consumption increased by 0.1 percent. Gross fixed capital formation increased by 0.7 percent - driven by investments in machinery (+4.0 percent) and vehicles (+2.7 percent). Residential construction investments remained weak at -0.9 percent, while other construction investments increased by 1.0 percent.

Fewer Working Hours

The number of employees remained unchanged compared to the previous quarter, while the number of self-employed slightly increased by 0.3 percent. At the same time, the working hours of employees decreased by 0.5 percent and those of the self-employed by 0.9 percent. Nominal employee compensation increased by 0.9 percent.

Year-on-year, GDP in the 2nd quarter of 2025 was 0.1 percent below the level of the 2nd quarter of 2024 - after minus 0.5 percent in the 1st quarter. The decline has thus significantly weakened.

As part of the regular revision cycle, Statistics Austria will publish new annual values for 2021-2024 on September 30, 2025; quarterly values up to and including the 2nd quarter of 2025 will also be revised.

(APA/Red)

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