Austria's economy experienced a contraction in the second quarter, revising earlier estimates of flat growth, according to the latest data released by Statistics Austria on Wednesday.
Gross domestic product (GDP) fell by 0.4 percent in the June quarter, overturning the 0.1 percent increase recorded in the March quarter.
From an expenditure perspective, household consumption decreased by 1.1 percent over the quarter, primarily contributing to the GDP decline.
Conversely, gross capital formation saw a significant rebound, rising by 7.2 percent. However, net foreign demand was unfavorable: exports remained nearly static, while imports increased by 0.6 percent.
On an annual basis, GDP dropped 0.6 percent in the second quarter, compared to a 1.0 percent contraction in the first quarter. Despite the ongoing decline, the rate is decelerating, indicating some economic resilience. Initially, the quarterly rate of change was predicted to be flat.
"Austrian's economy is transitioning from recession to stagnation," noted Tobias Thomas, Director General of Statistics Austria.
