The ratings on the Republic of Austria are supported by: A modern, highly diversified, competitive, and export-oriented economy; Sustained fiscal consolidation, and ongoing efforts to reduce the size of the state and lower the debt burden; and Stable and stress-tested democratic institutions based on consensus-building and predictable economic policy. Austria's economy is characterized by high living standards, based on a high level of productivity and the innovative capacity of its corporate sector. Markets are flexible and react swiftly to economic shocks. As a result, unemployment is significantly below levels observed across most of Europe, and the economy has been one of the least volatile among rated sovereigns. The resilience of Austria's economy is underpinned by its tradition of wage moderation
