After an acceleration of economic activity in the first half of 2017, latest business surveys do not suggest a further strengthening for Austria. GDP is expected to grow by 2.8 percent in 2017, the highest rate in six years. Despite the appreciation of the euro and a slowing growth momentum in third countries, the euro area should keep a firm upward trend in 2018, driven by the expansionary monetary policy of the ECB and a still untightened fiscal stance. The Austrian economy may grow in 2018 at the same rate as in 2017. From a cyclical perspective, further extension of the current expansionary fiscal policy would not be appropriate.