Domestic Economy Shrunk Less Than Expected in 2024

Austria's economy is in less of a crisis than previously assumed. According to the national accounts of Statistics Austria, the real Gross Domestic Product (GDP) in 2024 did not decrease by 1.0 percent as last assumed, but only by 0.7 percent. Statistics Austria also revised the GDP for 2023 upwards on Tuesday, instead of a minus of 1.0 percent, it is now 0.8 percent.

For 2024, this is already the second upward revision. At the beginning of March, the federal agency had still assumed a decline of 1.2 percent.

However, the upward revisions do not change the fact that Austria is currently experiencing the longest recession since World War II. Economic researchers also do not expect any or hardly any economic growth for 2025.

Austria's Economy: Figures for This Year Also Better Than Previously Assumed

Statistics Austria has also revised the figures for the first half of 2025 upwards. In the first quarter, the real GDP grew by 0.2 percent compared to the previous year's quarter, and did not shrink by 0.5 percent as previously assumed. In the second quarter, GDP grew by 0.3 percent instead of shrinking by 0.1 percent.

The preliminary detailed data of the GDP annual accounts now available show, according to Statistics Austria, that the decline in economic performance in 2024 is mainly attributable to the development of goods production. In particular, industries specializing in exports or capital goods recorded significant declines, especially vehicle manufacturing.

(APA/Red)

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