Austria's economy stalled in the second quarter, with growth flatlining as the economic headwinds from the U.S.-Iran war intensified.
The stagnation marks a sharp reversal from the modest expansion seen at the start of the year, driven primarily by surging oil prices that have squeezed corporate margins and consumer spending across the region.
The Austrian data underscores the broadening macroeconomic damage from the geopolitical conflict.
While energy markets have already repriced the supply risks, the transmission to real-economy output is now evident in European GDP figures.
The stagnation in Austria aligns with recent reports that the UK economy has contracted, reversing earlier gains as the conflict drags on domestic business output.
This deterioration in European economic activity reinforces the bearish outlook recently adopted by international institutions.