FX.co ★ Austrian Economy Contracts Further: GDP Slips by 0.4% in Fourth Quarter 2024

In a worrying economic trend, Austria's GDP contracted by 0.4% in the fourth quarter of 2024, following a previous decline of 0.1% in the third quarter of the same year. Updated data released on March 3, 2025, highlights the growing challenges facing Austria's economy as it navigates these choppy waters.

The quarter-on-quarter comparison sheds light on the persistent slowdown, as the current figure reflects a deepening contraction compared to the prior quarter. Where there was once hope that the previous small dip was a transitory phase, the current larger decrease raises concerns about the underlying health of Austria's economy.

Analysts are likely to delve into underlying factors contributing to this back-to-back quarterly decline, examining potential influences such as domestic consumption, investment trends, and international economic pressures. Policymakers face increasing pressure to implement measures that could stabilize and set the economy on a path to recovery in the coming months. As Austria steps into 2025, close monitoring and timely interventions may prove critical in reversing this downward trajectory.