Slight Increase in GDP in the Second Quarter

The domestic economy continues to weaken. The GDP increased by only 0.1 percent in the second quarter of 2025 compared to the same period last year and the previous quarter, according to WIFO's quick estimate. "While some service sectors expanded compared to the previous quarter, the dynamics in the industry were subdued," said the economic researchers. On the demand side, a positive development in private consumption supported the overall economy.

Decline not only in the construction industry

The value added in the construction industry fell by 0.3 percent, while it increased by 0.2 percent in the areas of information and communication, financial and insurance services, real estate, and housing. In trade, transport, as well as accommodation and gastronomy, the increase was 0.1 percent. The consumption demand of private households increased by 0.3 percent, while exports stagnated and imports increased by 0.9 percent.

Conclusion of the WIFO economists: "After the first signs of recovery in the industry were recorded in the first quarter of 2025, the dynamics are currently weak."

FPÖ: "Austria needs an economic comeback now"

Criticism of the country's economic development came from the FPÖ on Wednesday. "Austria needs an economic comeback now. A real location offensive can only succeed through supply-oriented structural reforms. For this, however, the entire government would need to have a positive attitude towards a free market economy and entrepreneurship," said FPÖ economic spokesperson Barbara Kolm. But from the federal government, there are only announcements instead of actions. Kolm's conclusion: "We have long known that Austria will be the only industrial country to shrink economically this year. Nevertheless, ÖVP Minister Wolfgang Hattmannsdorfer remains inactive. Thus, Austria remains the economic laggard in the EU."

(APA/Red)

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