Wifo Quick Estimate: Austria's GDP Stagnates in 2nd Quarter

Austria's economic performance stagnated in the second quarter of the year, halting the momentum of recovery, according to a rapid estimate by the Austrian Institute of Economic Research (Wifo).

The Wifo researchers attribute this economic pause primarily to the significant increase in crude oil prices, which they link to the ongoing conflict in Iran. This surge in energy costs has burdened the Austrian economy, interrupting the anticipated upswing.

Initial calculations by Wifo indicate that the real Gross Domestic Product (GDP) remained roughly level with the previous quarter. The industrial sector, in particular, experienced weak performance during this period, influenced by the geopolitical tensions. The construction industry also saw another decline in value added, further contributing to the overall economic slowdown.

In contrast to the second quarter's stagnation, Austria's GDP had shown modest growth in the preceding quarters. The fourth quarter of 2025 and the first quarter of 2026 each recorded a real increase of 0.2 percent compared to the prior period. However, sectors such as trade, transport, accommodation, and gastronomy managed to achieve slight growth, offering a small counterpoint to the broader industrial and construction downturn.