Economic growth is projected to remain solid, but will slow in 2019 and 2020. A deterioration in the external environment will damp export and investment growth. Solid employment growth is fostering wage and private consumption growth. Inflation remains moderate.
Robust economic growth, a low interest rate environment and efforts to constrain government spending have helped to reduce public deficits. Nevertheless, further measures, including addressing inefficiencies in education, health care and public administration would help to address the costs of an ageing society and free up funds to better reconcile work and family life.
1. Agriculture, activities of households as employers and activities of extraterritorial organisations are excluded.
2. Current capacity level of utilisation in manufacturing industry.
Source: OECD Economic Outlook 104 database; and Eurostat.
Economic Survey of Austria (survey page)