Growth should be supported by structural reforms
The Austrian economy is currently booming. In the coming years, it will lose momentum and will return to a solid growth path. Between 2018 and 2022, average growth of the real gross domestic product is estimated to equal 1.9 % per year, after 1.3 % in the past five years. The Austrian economy is thus projected to grow somewhat faster than the euro area economy (1.7 %). Exports and solid private consumption are supporting growth. The inflation rate is expected to average 2.0 %. Due to the positive economic outlook, labour market conditions should continue to improve. However, at 7.4 % at the end of the forecast period, the unemployment rate (according to the national definition) remains at a historically high level. The booming economy and low interest rates support the public sector to reach a budget surplus. The current favourable conditions should be used to address structural reforms in the public sector.