Austria: Staff Report for the 2003 Article IV Consultation

IMF Staff Country Reports, November 26, 2003

Source details

The Austrian economy performed well, but long-term problems were unaddressed.
Austria has weathered the slump well.
The government's economic policy priorities and recent achievements have been commendable.
Tax reform will help improve the economy's long-term growth potential.
Successful reform of inter-governmental fiscal relations is key to achieving the medium-term fiscal objectives.
The recent pension reform will ensure long-term sustainability of the pension system.
The creation of the financial market authority has strengthened financial supervision but continued vigilance is required.
The government's structural reform agenda is appropriate.

Growth and cyclical performance
- Austria performed well through the recent slump; headline assessment emphasizes resilience.
Fiscal policy and inter-governmental relations
- Reform of inter-governmental fiscal relations is identified as central to meeting medium-term fiscal objectives.
Tax and structural reforms
- Tax reform is expected to improve long-term growth potential.
- The government's broader structural reform agenda is judged appropriate.
Pension system sustainability
- Recent pension reform is judged sufficient to ensure long-term sustainability of the pension system.
Financial sector oversight
- Creation of the financial market authority has strengthened supervision; ongoing vigilance is recommended.

Continue implementation of tax reform to support long-term growth.
Pursue successful reform of inter-governmental fiscal relations to achieve medium-term fiscal objectives.
Maintain vigilance in financial supervision despite the strengthened institutional framework from the financial market authority.
Progress with structural reforms consistent with the government's agenda to address remaining long-term problems.

Austria: Staff Report for the 2003 Article IV Consultation — November 26, 2003