In the first quarter of 2024, the Austrian economy showed mixed results with some sectors experiencing growth while others were in decline. The industrial economy remained weak, but consumer-related services showed positive momentum. Private consumption supported the economy, but investment demand fell. GDP had been stable or declining in the previous three quarters.
The construction industry continued to decline, with a 1.1 percent decrease in value added in the first three months of the year. On the other hand, trade, transport, accommodation, and catering saw a 0.8 percent increase in value added. Consumer demand from private households increased by 1.3 percent, but gross fixed capital formation fell by 2.7 percent.
Foreign trade momentum decreased in the first quarter as exports decreased by 0.3 percent and imports by 1.5 percent. Despite this decline, exports supported GDP according to the Austrian Institute for Economic Research. Overall, it is important to continue monitoring these trends to assess the overall health of the economy.
In terms of specific sectors, there are areas of concern such as construction and investment demand while consumer demand and foreign trade provided some support to GDP. The Austrian Institute for Economic Research reported that exports supported GDP despite a decline in foreign trade momentum.
Overall, despite some challenges faced by certain sectors such as construction and investment demand, there were positive signs for consumer-related services and foreign trade providing support to GDP through private consumption and exports respectively.
It is important for policymakers to closely monitor these trends moving forward and take appropriate actions to address any concerns while continuing to promote economic growth across all sectors of the economy.
