Austria: Economy rebounds in Q3 2025
Momentum remains weak: According to flash data, Austria’s GDP increased 0.1% in seasonally adjusted quarter-on-quarter terms in Q3, following a 0.1% contraction in the prior quarter. Still, the expansion was weak and prolonged the economic malaise that has persisted since mid-2022.
On a year-on-year basis, economic output grew 0.6% in Q3, following a 0.5% expansion in the prior quarter.
Domestic and external sectors continue to languish: Both domestic demand and exports struggled to take off in Q3. Compared to the prior quarter’s data, readings in Q3 worsened for private consumption (+0.1% vs +0.3% in Q2), government consumption (+0.2% vs +0.3% in Q2), fixed investment (-0.3% vs +1.3% in Q2), exports of goods and services (-0.4% vs +0.3% in Q2) and imports of goods and services (0.0% vs +1.5% in Q2).
A full GDP breakdown will be made available on 4 December.
Panelist insight: Erste Bank’s Maximilian Möstl commented:
“We forecast GDP growth of +0.1% for 2025. US tariffs continue to weigh on the Austrian export economy. However, private consumption is supporting economic development this year. We do not expect the planned German infrastructure programme to have a positive impact until next year. We anticipate GDP growth of +0.7% in 2026.”