Austria: Staff Report for the 2012 Article IV Consultation—Informational Annex
Author: International Monetary Fund
Publication Date:
28 Aug 2012
eISBN:
9781475506778
Language:
English
Keywords:
ISCR; CR; flash estimate; deceleration; flash release; growth; GDP series; budgetary fund; social security fund; macroeconomic statistics; Reserve assets
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Austria has relatively strong macroeconomic fundamentals, but also deep ties with the rest of the euro area. The legacy of an overly ambitious eastward financial sector expansion has created substantial challenges to its policymakers. Policies have been designed to preserve market confidence, increase resilience against future adverse external spillovers, and boost potential growth. The Austrian supervisory authorities have also introduced a set of macroprudential guidelines to strengthen the resilience of the banking sector. However, improvements in the fiscal governance framework have not advanced as expected.

Abstract

Austria has relatively strong macroeconomic fundamentals, but also deep ties with the rest of the euro area. The legacy of an overly ambitious eastward financial sector expansion has created substantial challenges to its policymakers. Policies have been designed to preserve market confidence, increase resilience against future adverse external spillovers, and boost potential growth. The Austrian supervisory authorities have also introduced a set of macroprudential guidelines to strengthen the resilience of the banking sector. However, improvements in the fiscal governance framework have not advanced as expected.

Fund Relations

(As of June 30, 2012)

Mission: Consultation discussions were held in Vienna from June 22 to July 2, 2012. The authorities released the mission’s concluding statement, which is available at:

http://www.imf.org/external/np/ms/2012/070212.htm

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

Country interlocutors: Central Bank Governor Nowotny, Minister of Labor Hundstorfer, State Secretary for Finance Schieder, 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 3-14, 2011 and the staff report is available at:

http://www.imf.org/external/pubs/cat/longres.aspx?sk=25222.0

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. Significant progress has been made to remedy several deficiencies but some remain. Austria has been encouraged by the FATF Secretariat to provide its third follow-up report in February 2013.

I. Membership Status: Joined: August 27, 1948; 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, which floats freely and independently against other currencies. 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.

Statistical Issues

1. 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.

2. 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, 2012)

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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: 2012 Article IV Consultation: Staff Report; Informational Annex; Statement by the Staff Representative; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Austria
Author: International Monetary Fund
Volume/Issue:
Volume 2012: Issue 251
Publisher:
International Monetary Fund
ISBN:
9781475506778
ISSN:
1934-7685
Pages:
59
DOI:
https://doi.org/10.5089/9781475506778.002