Austria: Shifting into high gear

Although the Austrian economy just missed the 3%-mark for the whole of 2017, according to a flash estimate from the Austrian Institute of Economic Research, growth performance has been robust throughout the year.

In the final quarter of 2017, growth was once again broad-based. The export-driven economy, in particular, accelerated towards the end of the year due to strong global trade while domestic demand and investment (+1.8%) also proved favourable.

Looking ahead, while momentum and global demand remain on the upside, the stronger euro might weigh on exports. However domestically, the new Austrian government’s economic policies should have a positive impact, bringing financial relief for companies and individuals. Overall, we expect the Austrian economy to continue its strong performance going into 2018, before starting to abate somewhat from the middle of the year.