A city on a lake in Austria

Austria GDP Q3 2018

Austria: Growth stays steady in the third quarter despite downward revision

According to a second reading of national accounts data, the Austrian economy grew a tad slower than previously estimated. In the third quarter, economic growth was revised slightly down from 0.4% quarter-on-quarter, as reported in the flash reading, to 0.3% qoq (Q2: +0.3% quarter-on-quarter). The headline figure now matches the preliminary result for the EU28 and was driven by both the domestic economy and the external sector. Compared to the same period a year ago, the slowdown was more marked than estimated in the preliminary reading: Year-on-year growth was revised down from 2.4% to 2.2% (Q2: +2.7% year-on-year).

Compared to the previous quarter, the domestic economy benefited from strong household consumption and fixed investment growth. Private consumption expanded 0.3%, slightly down from the preliminary estimate of 0.4% and the second quarter’s 0.4% expansion. Household expenditure benefited from still-elevated consumer confidence amid a low unemployment rate and subdued inflation. The slight downward revision was due to a marked contraction in consumer durables linked to troubles in the automotive sector due to new, tougher emission regulations. New car registrations were down by nearly a fifth in the quarter. Meanwhile, fixed investment decelerated more than previously estimated owing to a revision to the second quarter’s expansion (Q3: +0.7% qoq; Q2: +1.1% qoq, previously reported: +1.2% qoq). Investment expenditure in the third quarter remained robust on strong expansions in the construction sector, while equipment investment increased only moderately. Meanwhile, public consumption growth was revised down a tad from 0.5% to 0.4% (Q2: +0.5% qoq).

The external sector also contributed positively to economic growth due to robust export growth (Q3: +0.7% qoq, previously reported: +0.6% qoq; Q2: +0.7% qoq) and a slight moderation in imports (Q3: +0.4% qoq, previously reported: +0.3% qoq; Q2: +0.7%). Due to Austria’s regional orientation, the external sector has seemingly remained largely unmoved by global trade tensions. However, the political uncertainty and possible intensifications of trade tensions between the U.S. and China and the EU continue to pose downside risks.

Austria’s economy is expected to finish the fourth quarter on a robust footing, although the pace of growth is expected to moderate from the stellar quarters earlier this year. Next year, the economy should continue to grow at a healthy pace due to a healthy labor market and robust growth in fixed investment, although growth is seen moderating noticeably from strong performances last year and this year.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen