IMF: Austria Must Prevent Spillover Effects

Politics ♦ Published: September 3, 2012; 14:58 ♦ (Vindobona)

The Executive Board of the International Monetary Fund (IMF) has concluded the Article IV consultation with Austria. The Austrian banking sector is “overly ambitious” in the CESEE region, IMF says.

IMF: Austria Must Prevent Spillover Effects / Picture: © IMF

Background

Austria’s growth performance was strong in 2011, supported by buoyant employment, and the economy has limited slack. For the year as a whole, growth amounted to 2.7 percent, mainly driven by investment. Employment grew strongly, and unemployment reached 4.2 percent in 2011, the lowest rate in the euro area.

At 3.6 percent in 2011,…