RTTNews - Austria's economy continued to contract in the second quarter, but the pace declined notably compared to the first quarter.

Gross Domestic Product or GDP fell 0.4% in the second quarter, compared with the first, the Austrian Institute of Economic Research or WIFO said Thursday. It follows a decline of 2.7% in the first three months of the year, which was revised from a 2.6% contraction reported initially.

Compared to the previous year, GDP dropped 4.4% in the second quarter followed by a revised 4.7% decline in the first quarter.

In June, WIFO revised its GDP outlook for 2009, while maintained forecasts for 2010. It forecasts Austria's economy to contract 3.4% this year, down from a 2.2% shrinkage predicted in March. At the same time, the think tank retained its outlook for a 0.5% growth in 2010.

Also in June, the Institute for Advanced Studies or IHS lowered its forecast for Austria's economy to show a contraction of 4.3% this year from a previous forecast of 2.7% decline. In 2010, the economy is expected to expand by 0.3%, slightly down from 0.4% growth predicted in March.

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