However, due to extremely strong growth in the first half of the year, the Austrian economy is expected to expand by 4.7% this year. For the coming year, growth of only 0.3% is expected. Driven by high energy prices, and in line with international developments, the domestic inflation rate is expected to average 8.5% this year and remain very high at 6.8% next year. The unemployment rate is expected to rise from 6.4% this year to 6.7% next year. Fiscal policy remains expansionary, but IHS believes that additional burdens on the budget should be avoided.