First-Quarter GDP Contracting

In the first quarter of 2009, the Austrian economy shrank at a seasonally and working day adjusted rate of 2.8 percent in real terms compared with the previous quarter (after –0.4 percent in the fourth quarter of the previous year). Hence, GDP was 3.6 percent below the year-earlier level (+0.0 percent in the fourth quarter). The situation on the labour market has worsened further as the downturn continues. However, confidence indicators and some special factors point to an easing of the downward trend in the second quarter. Firms' expectations regarding their future business situation, for instance, have recently improved marginally worldwide, but this trend needs yet to be confirmed in further surveys.