Total production in Austria should grow in real terms by 1.7 percent in 2016, significantly above the pace recorded for the last four years and closing the growth gap vis-à-vis Germany and the euro area average. While the contribution of net trade is dragging down growth this year, domestic demand is rising substantially. Investment is lively and private households, for the first time in three years, are spending in real terms more on consumption. In 2017, stronger exports should offset some slackening in internal demand, keeping real GDP growth at 1.5 percent.