Austria: Economy fires on all cylinders in 2Q - ING

Inga Burk, Economist at ING, explains that Austria’s second quarter growth came in at 0.8% QoQ, underlining the economic upturn.

Key Quotes

“Austrian growth was stronger than expected, coming in at 0.8% QoQ, the same pace as in the previous quarter (revised up to 0.8% QoQ) according to a first flash estimate from the Austrian Institute of Economic Research. The more volatile Eurostat measure confirmed the positive picture, coming in at 0.9% QoQ (from an upwardly revised 0.7% QoQ).”

“Second quarter growth was broad-based, driven by domestic and foreign impulses with strength coming from exports, consumption and corporate investments. Supported by strong export demand, the upswing in the industrial economy strengthened. While consumption was solid, growth lost some momentum and came in slightly lower than in the first quarter (at 0.2% vs 0.3%). As in the quarter before, not even net exports exerted any downward pull.”

“After a robust first half of the year, the signs for the second half-year continue to look bright. On the back of favourable international and domestic conditions, Austria’s upswing is set to last and fundamentals and sentiment are performing well.  Early parliamentary elections are due in October, giving some uncertainty on the prospective orientation of the next government. However, with sentiment high, the robust growth story is likely to continue through the year.”