During the period of 2012-2017, the Austrian economy is projected to grow at an average annual of 1.7 percent. The average growh rate will thus be lower than in the decade preceding the recent financial and economic crises. The main causes of this sluggish pace of economic growth will lie in the persistent cyclical sluggishness in the euro area and the moderate growth of domestic private consumption. Exports are expected to gain 5.2 percent per year. The labour market will remain fragile, despite rising employment. The rate of headline inflation is projected at slightly above 2 percent.