FX.co ★ Austrian Economy Stalls in Q2

Austria’s economy flatlined quarter-on-quarter in Q2 2026, following 0.2% growth in each of the previous two quarters, according to preliminary estimates. The pause in growth was largely attributed to higher oil prices stemming from the conflict in Iran, which disrupted the ongoing economic recovery.

On the expenditure side, household consumption slipped (-0.1% vs. +0.2% in Q1), and government spending also edged lower (-0.1% vs. +1.6%). In contrast, gross fixed capital formation increased by 0.4%, after being broadly unchanged in the prior quarter. Net trade contributed little to overall growth, with exports up 0.5% and imports rising 0.6%.

From the production perspective, industrial output softened (-0.1% vs. +1.3%), while construction activity contracted for the second consecutive quarter (-0.4% vs. -0.6%). By contrast, trade and tourism-related services returned to growth (+0.3% vs. -0.8%), and information, financial, insurance, and real estate services remained robust (+0.8%).

On an annual basis, GDP expanded by 0.8%, a slight deceleration from the 0.9% growth recorded in Q1.