Austria: Staff Report for the 2008 Article IV Consultation—Informational Annex
Author: International Monetary Fund
Publication Date:
19 Jun 2008
eISBN:
9781451802405
ISBN:
9781451802405
Language:
English
Keywords:
ISCR; CR; authority; government agreement; supervisory authority; deficit; reserve liability; budgetary fund; social security fund; Reserve assets
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A mix of solid economic policies, wage moderation, and an early orientation toward Eastern Europe explain Austria’s strong economic performance. The economy has grown strong in 2007 and through the first quarter of 2008. Employment growth remains strong, but the trend of a declining unemployment rate appears to be tapering off. Tighter labor market conditions have not resulted in sharp wage increases; instead negotiated wages for 2008 are up. Austria’s external position remains strong, despite a recent decline in competitiveness.

Abstract

A mix of solid economic policies, wage moderation, and an early orientation toward Eastern Europe explain Austria’s strong economic performance. The economy has grown strong in 2007 and through the first quarter of 2008. Employment growth remains strong, but the trend of a declining unemployment rate appears to be tapering off. Tighter labor market conditions have not resulted in sharp wage increases; instead negotiated wages for 2008 are up. Austria’s external position remains strong, despite a recent decline in competitiveness.

Annex I. Austria: Fund Relations

(As of April 30, 2008)

Mission: Consultation discussions were held in Vienna during March 7-17, 2008. The authorities released the mission’s concluding statement, which is available at: http://www.imf.org/external/np/ms/2008/031708.htm.

Staff team: Messrs. Hilbers (head), Kanda, Lundback, Rosenberg (all EUR), and Hardy (MCM). Mr. Prader, Alternate Executive Director for Austria, attended the meetings.

Country interlocutors: The Vice-Chancellor and Minister of Finance; the Minister of Economics and Labor; the Governor of the Austrian National Bank (OeNB); the Chief Executive Officers of the Financial Market Authority (FMA); and senior officials at the federal and lower level governments, the OeNB, and the FMA. The mission also met with the parliamentary budget committee, representatives of economic research institutes, employers’ organizations, the federation of trade unions, and commercial banks. There was a press conference at the end of the mission.

Fund relations: Austria is on a 12-month consultation cycle. The last consultation was completed on April 23, 2007. The reports is available at: http://www.imf.org/external/pubs/cat/longres.cfm?sk=20670.0

FSAP Update: An FSAP Update, with a mission during November 27-December 11, 2007, was conducted in parallel with the 2008 Article IV consultation.

I. Membership Status:

(a) Joined: August 27, 1948

(b) Status: Article VIII, as from August 1, 1962

II. General Resources Account:

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III. SDR Department:

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IV. Outstanding Purchases and Loans: None

V. Latest Financial Arrangements: None

VI. Projected Payments to Fund:

(SDR Million; based on existing use of resources and present holdings of SDRs):

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VIII. Exchange System:

As of January 1, 1999, the currency of Austria is the euro. Austria’s exchange system is free of restrictions on the making of payments and transfers for current international transactions with the exception of restrictions notified to the Fund in accordance with decision No. 144-(52/51) resulting from UN Security Council Resolutions and EU Council regulations. The most recent notification was made on March 19, 2008. Furthermore, national restrictions apply with respect to certain terror organizations and their activists within the EU, implementing decisions in the Common Foreign and Security Policy (CFSP) framework of the EU.

Annex II. Austria: Statistical Issues

Macroeconomic statistics are adequate for surveillance. Austria subscribed to the Fund’s Special Data Dissemination Standard (SDDS) in 1996, and its metadata are available on the Fund’s electronic Dissemination Standards Bulletin Board. Austria is availing itself of the SDDS flexibility option on the timeliness of the industrial production index and the merchandise trade data.

The transition to the new European System of Accounts 1995 (ESA 1995) has complicated the analysis of national accounts and fiscal data. The new national accounts do not provide information on household disposable income, except for an economy-wide aggregate, thus precluding the calculation of a household saving ratio. In addition, the reclassification of public hospitals in 1997 introduced a break in the national account series on public and private consumption. Annual fiscal data for 1995 onward are derived from ESA 1995 data reported to Eurostat, using bridge tables created in a collaborative effort by the Fund and Eurostat. Data on outlays by function have been revised and are available from 1995 onward on a comparable basis according to major functional categories. Reported data on the net acquisition of financial assets and net incurrence of liabilities exclude a breakdown between domestic and foreign financing. Quarterly fiscal data reported through Eurostat are disseminated in the IFS.

The ECB reporting framework is used for monetary statistics and data are reported to the IMF through a “gateway” arrangement with the ECB. The arrangement provides an efficient transmission of monetary statistics to the IMF and for publication in the IFS and IFS Supplement.

Austria: Table of Common Indicators

(as of April 30, 2008)

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Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

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Cover IMF Staff Country Reports
Austria: 2008 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Austria
Author: International Monetary Fund
Volume/Issue:
Volume 2008: Issue 188
Publisher:
International Monetary Fund
ISBN:
9781451802405
ISSN:
1934-7685
Pages:
43
DOI:
https://doi.org/10.5089/9781451802405.002