Economic activity is set to remain buoyant through 2018 and, to a lesser extent, 2019, boosted by strong rebounds in investment and exports. Solid job creation and dynamic wages underpin private consumption. Inflation remains higher than in other euro area countries, mainly driven by prices in sectors that are little exposed to international merchandise trade.
The public deficit is declining albeit less than strong growth would imply. An improvement of public spending efficiency would free up funds for the extension of full-day schooling and childcare in rural areas, the upgrading of digital infrastructure and investments in life-long learning programmes. A more equity-capital-friendly business environment and further improvements in digital infrastructure would benefit both businesses and households.
Economic Survey of Austria (survey page)