From a rate of growth of 1.5 percent in 2016, demand and output in Austria are expected to accelerate significantly in 2017 and 2018. Leading indicators clearly suggest a further strengthening of business activity. Apart from lively internal demand benefitting from benign labour market conditions, foreign trade will rebound and contribute more strongly to GDP growth than in recent months. In this environment, the Austrian economy is expected to expand by 2.0 percent in the current year and 1.8 percent in 2018.