Austria recorded a sharp shift in its trade balance in the first half of 2025, as exports of goods declined by 3.1 percent year-on-year while imports rose by 2.9 percent, according to preliminary figures released by Statistics Austria on Sunday. The downturn in exports, particularly to the United States and Switzerland, combined with a surge in imports, led to a trade deficit of 3.29 billion euros, a significant reversal from the surplus of 2.43 billion euros during the same period in 2024.
From January to June 2025, the value of Austrian exports dropped to 94.17 billion euros, while imports climbed to 97.46 billion euros. Officials said the decrease in outbound trade was largely due to falling demand from major trading partners, notably in North America and Europe. At the same time, increased imports from Switzerland and China added pressure to the country’s trade balance.
Manuela Lenk, Director General of Statistics Austria, said Austria’s international trade remained relatively stable overall but noted key fluctuations in specific bilateral trade relationships. Imports from Switzerland saw the highest percentage increase among Austria’s top trading partners, rising by 74.4 percent, while imports from China rose by 13 percent. Germany, Austria’s largest trading partner, registered a marginal 1 percent increase in imports.
Conversely, France and Poland saw notable declines in their export contributions to Austria, with French imports down 10.3 percent and Polish imports decreasing by 4.6 percent in the first six months of the year. The divergence between rising import costs and falling export revenue has raised concerns among policymakers monitoring Austria’s external economic exposure.
Decline in exports to US, Switzerland drives deficit
The export side presented a more challenging picture. Among Austria’s ten most important export destinations, only Italy and Czechia registered growth, with export increases of 5.1 percent and 3.6 percent, respectively. However, exports to the United States fell sharply by 14.4 percent, while shipments to Switzerland and France decreased by 11.5 percent and 11.1 percent, respectively. These declines significantly weighed on Austria’s overall export performance.
In terms of regional trade, Austria’s transactions with European Union member states reflected moderate changes. Imports from within the EU grew slightly by 0.3 percent to 63.92 billion euros, while exports fell by 1.2 percent to 64.39 billion euros. This left Austria with a trade surplus of 480 million euros with EU countries, less than half the 1.47 billion euros surplus recorded during the same period last year.
Trade with non-EU countries, classified as third countries, revealed a more uneven pattern. Imports from these markets rose by 8.1 percent to 33.55 billion euros, while exports dropped by 6.9 percent to 29.78 billion euros. The widening imbalance with third countries added further pressure to Austria’s external trade position, contributing to the overall deficit.
Austria’s manufacturing and export sectors face mounting strain
The latest data underscore growing vulnerabilities in Austria’s export-driven economy. The loss of momentum in global demand, particularly from key partners such as the United States, is having a measurable impact on national output. Meanwhile, surging imports reflect continued domestic consumption but also a rising dependency on external goods, especially in high-value sectors such as pharmaceuticals and electronics.
Economists caution that unless Austria reverses the downward trend in exports and curbs high-growth imports, the current deficit trajectory could persist into the second half of 2025. The government is expected to assess trade diversification measures and support mechanisms for export-oriented industries to mitigate further deterioration in the trade balance. – By EuroWire News Desk.