The GDP declined by 0.6 percent in real terms in the third quarter (Q3) compared to the same period last year, extending the economic downturn that began in Q2 2023. A recession is generally defined as two consecutive quarters of economic contraction.
Statistics Austria said in a statement that the country's manufacturing sector experienced "a significant decline" of 3.7 percent in Q3 as it continued to suffer from the global economic downturn, Xinhua reported.
Austria's foreign trade has also recorded marked declines in the first eight months of this year. Imports fell by 9.8 percent, while exports decreased by 4.4 percent compared to the same period last year, according to the statement.
On a more positive note, Statistics Austria reported that inflation, estimated at 1.9 percent in November, has dropped from the high levels seen in recent years. It has now stabilized below the European Central Bank's medium-term target of 2 percent.