In the first quarter of 2024, the domestic economy saw a slight increase in output by 0.2 percent compared to the previous quarter, but a decline of 1.3 percent year-on-year. Despite this, consumer-related services showed positive momentum, while the industrial economy remained weak. Wifo reported that private consumption was a key driver of the economy, but investment demand fell. The construction industry continued to decline with a 1.1 percent decrease in value added during the first three months of the year.
Trade, transport, accommodation and catering saw an increase of 0.8 percent in value added, while other economic services fell by 0.7 percent. Consumer demand from private households increased by 1.3 percent, but gross fixed capital formation decreased by 2.7 percent. Foreign trade momentum also decreased in the first quarter with exports falling by 0.3 percent and imports declining by 1.5 percent despite this exports still supported GDP according to Austrian Institute for Economic Research.
Overall, the economy experienced mixed results with some sectors showing growth while others were in decline. The construction industry and investment demand were areas of concern, while consumer demand and foreign trade provided some support to GDP