Robust domestic demand, high external risks
Following an increase of 2.6 % in the previous year, the Austrian economy continued to grow strongly in the first half of the current year. Amidst moderate growth in the euro area since the beginning of the year and the high level of uncertainty in the external environment, the expansion was somewhat slower in the second quarter. The Austrian economy is projected to grow by 2.7 % in 2018 and 1.7 % in 2019. The downside risks have intensified since spring, in particular due to the uncertainty about the future relationship between the UK and the EU and rising trade protectionism. Structural reforms remain a priority to strengthen the growth potential of the Austrian economy and to increase its resilience to international economic downturns.