The Austrian economy grew by +3.2 percent last year, its strongest growth rate since 2000. Evidence from business surveys points to a continuation of this strong expansion in the coming months. The stimulus to economic activity will shift from exports to investment. Consumer spending is still lagging behind, but the situation on the labour market and the results of consumer confidence surveys give cause for cautious optimism. Inflation remains low, which is unusual in view of the booming economy. The strong performance of the economy and the mild winter weather had very positive effects on the labour market in February, with employment posting sizeable gains and unemployment declining further.