VIENNA, June 16 (Xinhua) -- The Austrian economy is expected to expand at 3.1 percent year on year in 2018, higher than the previous forecast of 2.8 percent, the central bank of Austria has said.

The central bank sees a positive situation for Austria's economy, given strong demand both domestically and abroad.

Investment also plays an important role in boosting the economy growth, as Austria has the second highest investment rate in the eurozone, according to local media.

The central bank expects the unemployment rate to drop to 5 percent this year.