Economic momentum continued to slow in the first quarter of 2023. The domestic gross domestic product (GDP) fell by 0.3 percent compared to the previous quarter, as determined by WIFO in the current flash estimate. The economy had stagnated in the previous two quarters. Compared to the start of 2022, however, there was growth of 1.8 percent.
In addition to declines in consumer-related and economic service sectors, the development in industry also stagnated in the first three months of this year, according to WIFO. On the demand side, foreign trade weighed on the economy.
However, the momentum continued to decline “above all in the service sectors”. In the areas of trade, transport, accommodation and gastronomy, economic output fell by 0.3 percent. On the other hand, consumer demand from private households had a “slightly stabilizing” effect (plus 0.7 percent). However, after three quarters of growth, public consumption was recently on the decline (minus 0.6 percent).
