FX.co ★ Austrian Economy Slightly Recovers in Q1

The Austrian economy experienced a slight growth of 0.1% quarter-on-quarter in the first quarter of 2025, which was marginally below the preliminary forecast of 0.2%. This increase marks the first instance of economic growth since the first quarter of 2024, indicating a tentative recovery after a downwardly revised 0.1% contraction in the prior quarter. The GDP was positively influenced by net trade; although exports remained flat compared to a 0.4% decline in the first quarter of 2024, imports fell by 1.1%, improving from a previous increase of 0.3%. However, fixed investments saw a decrease of 1.3%, influenced significantly by a reduction in investments in residential properties and other structures. Furthermore, household consumption growth slowed dramatically to 0.1% from 0.8%. On the production side, the improvement was mainly fueled by progress in the industry and services sectors. Annually, the GDP contracted by 0.5%, following a downwardly revised contraction of 0.1% in the previous quarter.