Economic growth in Austria lost considerable momentum in recent months. A major reason is the current phase of weakness in the global trade cycle that weighs on exports and industrial output. Persistently favourable financing conditions, fiscal incentives and resilient consumer demand remain supportive to domestic business activity. After an increase of 1.7 percent in 2019, GDP is projected to grow by 1.2 percent in 2020 and 1.4 percent in 2021.