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IMF gives positive evaluation of Austria’s economic policies

Euro © photocase.com/checka

© photocase.com/checka

June 25, 2008

Praise for sound economic policies, but challenges due to general economic softening in Europe on the horizon

“Solid economic policies, wage moderation, and an early focus on Central, Eastern, and South Eastern Europe (CESE) explain Austria's strong economic performance in the past period. Wage moderation, resulting from a strong social partnership, has preserved competitiveness and supported export led growth, which has significantly exceeded the euro area average in the past period. In line with developments in major trading partners, a slowdown is expected for 2008-09.

The economy grew strongly in 2006-07: real GDP increased by more than 3 percent in both years, driven by robust exports and investment. Looking ahead, the growth momentum is expected to soften in the course of the year as activity in trading partners dampens and growth is projected to slow to around 2 percent in 2008-09.”

This is how the International Monetary Fund’s Executive Board starts its public information notice on the Article IV Consultation with Austria. Read more about how the international finance body sees Austria’s economic policy and achievements here.

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