The ratings on the Republic of Austria are supported by its wealthy, modern, and competitive economy; flexible labor and goods markets and moderate wage policies that support growth, competitiveness, and employment; and increasing fiscal flexibility through sustained fiscal consolidation. The exceptionally large general government sector and high--albeit declining--level of general government debt are rating weaknesses. The Republic of Austria's economy is characterized by high living standards, based on strong productivity and the innovative capacity of its 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
