VIENNA, June 3 (Xinhua) -- Statistics Austria announced on Monday that Austria's gross domestic product (GDP) contracted for the fourth consecutive quarter in the first three months of this year, underscoring the ongoing economic challenges as the country grapples with recession.
The Alpine country's GDP shrank by 1.1 percent in real terms in the first quarter (Q1) of this year compared to Q1 2023, following contractions of 1.7 percent, 2 percent and 1.6 percent in Q2, Q3 and Q4, respectively, of last year.
A recession is usually defined as two consecutive quarters of economic contraction.
In a statement, Director General of Statistics Austria Tobias Thomas attributed the economic decline in Q1 2024 primarily to decreases in industry and wholesale, while noting that the economy is being supported by private consumption.
The manufacturing sector saw a year-on-year output contraction of 5.9 percent during the period, while trade activities experienced a shrinkage of 4.8 percent in output.
Statistics Austria reports that inflation, a persistent issue in the country for the past two years, dropped to 3.5 percent in April. However, Austria's inflation rate is declining at a slower pace than that of the eurozone. It currently has the fifth-highest inflation rate among all 20 countries in the eurozone.
Austria experienced a 3.1-percent annual growth in exports during the first two months of this year. However, imports saw a sharp decline, down 13 percent year-on-year.
In March, the Austrian Institute of Economic Research (WIFO) predicted that the Austrian economy would stagnate this year, with a mere 0.2-percent GDP growth, citing high interest rates and the European economic downturn as contributing factors. ■
