Rapid assessment

Wifo: Economy remains weak in the third quarter

In addition to industry, the construction sector is also still in recession.

(Bild: APA/Harald Schneider)

Economic output in Austria did not pick up in the third quarter either. Compared to the previous year, there was a decline of 0.1 percent and an increase of 0.3 percent compared to the previous quarter of 2024, report the economic researchers at Wifo.

The decline in the industrial and construction sectors continued, while value creation in the service sectors developed unevenly. The consumer mood of households remains "sluggish", according to the Wifo flash estimate for this year's third quarter published on Wednesday.

After the domestic economy had already recorded significant losses at the end of 2023, the economy was weak in this year's first quarter (plus 0.2 percent) and in the second quarter of 2024 (plus/minus zero), analyze the economists of the economic research institute.

Industry and construction would remain in recession and service production would also remain predominantly weak. Trade and transport stagnated, as did financial and insurance services and real estate and housing. Other services and public administration had a positive impact on gross domestic product (GDP).

Private consumption still not picking up
There is no good news for the retail sector, which is currently in collective bargaining negotiations and preparing for the Christmas business: "Private consumption remains very weak and below the same quarter of the previous year," the economic researchers said in a statement on Wednesday.