The Republic of Austria's economy is characterized by high living standards, based on strong productivity and the innovative capacity of the corporate sector. Markets are flexible and react swiftly to economic shocks. As a result, unemployment is significantly lower than levels observed across most of Europe, and economic performance has been one of the least volatile among rated sovereigns. Austria's resilient economy is underpinned by its tradition of wage moderation and responsible social partnership. Since the turn of the decade, Austria has embarked on a seemingly irreversible path of responsible macroeconomic policies and modernizing microeconomic reforms. Successful implementation of tax, pension, and health-care reforms, as well as privatization efforts over past years have made Austria a showcase for reform in
