Austria: Staff Report for the 2011 Article IV Consultation—Informational Annex
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Increasing integration to the East has benefited the Austrian economy, but also created vulnerabilities that came to a head with the global financial crisis. The crisis has highlighted old challenges and created new ones that need to be addressed. The banking sector’s return to more normal levels of profitability creates the conditions for a further build-up of high-quality capital and exit from government support. Policies to foster labor market participation by low-skill workers and human capital accumulation would increase long-term growth.

Abstract

Increasing integration to the East has benefited the Austrian economy, but also created vulnerabilities that came to a head with the global financial crisis. The crisis has highlighted old challenges and created new ones that need to be addressed. The banking sector’s return to more normal levels of profitability creates the conditions for a further build-up of high-quality capital and exit from government support. Policies to foster labor market participation by low-skill workers and human capital accumulation would increase long-term growth.

Annex I. Austria: Fund Relations

(As of June 30, 2011)

Mission: Consultation discussions were held in Vienna during June 3-June 14, 2011. The authorities released the mission’s concluding statement, which is available at: http://www.imf.org/external/np/ms/2011/061411.htm

Staff team: Ms Detragiache (head), Messrs. Steinlein and Vandenbussche (all EUR) and Ms. Mishra (RES). Mr. Prader, Alternate Executive Director for Austria, attended the meetings.

Country interlocutors: Finance Minister Fekter, Austrian National Bank (OeNB) Governor Nowotny, other senior officials, members of Parliament, and representatives of the social partners, the financial sector, and economic research institutes.

Fund relations: Austria is on a 12-month consultation cycle. The last consultations were held June 18-30, 2010 and the staff report is available at: http://www.imf.org/external/pubs/cat/longres.aspx?sk=24187.0

FATF: The Fund published its report on Observance of Standards and Codes—FATF Recommendations for Anti-Money Laundering and Combating the Financing of Terrorism in November 2009. The report is available at: http://www.imf.org/external/pubs/ft/scr/2009/cr09299.pdf

Based on its action plan and commitments, the FATF plenary removed Austria from the specific review list in June 2010.

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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VII. Implementation of HIPC Initiative: Not Applicable

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, including the implementation of the sanctions on Iran according to EU Council Resolution No. 961/210 as amended and on Libya according to EU Regulation 204/2011 as amended. 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 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. Data on outlays by function have been revised and are available from 1995 onward on a comparable basis according to major functional categories. 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 July 30, 2011)

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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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Austria: 2011 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Austria
Author:
International Monetary Fund