Austria is a stable and wealthy economy and growth has picked up following the 2016 tax reform and the recovery of export demand. However, like in most OECD countries, trend output growth has declined since the 1990s. Labour supply has expanded, driven by rising participation of women and elderly and an increase in immigration, but hours worked per worker have declined. Productivity has slowed and Austria has lost market shares within regional value chains. Investment has recently accelerated, yet enterprise churn, start-up rates and the renewal of business models are weaker than in comparable countries. Reinvigorating business dynamism would improve competitiveness and labour demand, and spur both growth and social cohesion.