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Foreword © BMLFUW / Bernhard Kern © BMF / HBF 2008 was a turbulent and challenging year for the global economy. As a reaction to the world-wide economic crisis the government of the Republic of Austria has reacted promptly and has successfully defended the stability of the financial system by a number of measures. As the global economy continues to experience significant strains, the fundamentals of the Austrian economy remain sound. According to recent stress tests, Austria is among the most resistant countries and is well prepared to weather the current economic crisis. The AAA ratings from all major rating agencies confirm this view and reflect the degree of trust into the economic and financial strength of the Republic. In order to ensure a continuation of the economic growth and budgetary stability the current Austrian government’s budgetary policy is built on three cornerstones. Firstly, the government targets a balanced budget over the economic cycle. Secondly, growth and employment will be promoted by investments in R&D, infrastructure, education and universities as well as in social affairs. Lastly, savings from structural reforms will be passed on to the citizens. I am convinced that this publication’s information on the general government debt and on the fundamentals of the Austrian economy will be received with interest and will yield further contribution to the strong confidence in the fundamentals of the Republic of Austria. Over the past months, we have held numerous meetings with investors from many different countries and regions. The current turmoil on the financial markets has been an ongoing topic when discussing the general economic developments. Referring to the government bond market, a flight to liquidity and a concentration towards large issuers occurred as a reaction to the global financial crisis. This situation has created opportunities for fundamentally oriented investors seeking quality at attractive yields. We noticed an increased demand for information in a condensed format. I am delighted to present this annual review and I am confident that it will help to satisfy the increased demand for data. I invite you to contact us for any further information you may require. Yours faithfully, Martha Oberndorfer, CFA Managing Director of the Austrian Federal Financing Agency, Debt Management Office of the Republic of Austria Yours faithfully, Josef Pröll Minister of Finance Spanish Riding School, Vienna © Österreich Werbung / H. Graf 2 | Annual Review 2008
Economic and Budgetary Key Data for 2008 In 2008, the Austrian economy continued to grow. Real Gross Domestic Product increased by 1.8% and reached EUR 282.2 bn. This compares favourably to the Eurozone average of 1.1% 1 . During the second half of the year, the Austrian economy slowed down, which is expected to continue in 2009. Recent forecasts for 2009 expect a 2.2% decline of Austrian GDP, reflecting the ongoing contraction in the global economy. GDP per capita reached 31,300 in 2008 which is 24.7% above the EU-27 average. 2 Key Economic Figures Real GDP Growth 2006 2007 2008 2009 2010 Austria 3.4% 3.1% 1.8% -2.2% 0.5% Eurozone 3.0% 2.6% 0.7% -4.1% -0.3% United States 2.8% 2.0% 1.1% -4.0% 0.0% Japan 2.0% 2.4% -0.6% -6.6% -0.5% OECD average 3.1% 2.7% 0.9% -4.3% -0.1% 4% 2% 0% -2% -4% -6% Austria Eurozone United States Japan Real GDP Growth Unemployment Rate 2006 2007 2008 2009 2010 Austria 4.8% 4.4% 3.8% 5.0% 5.8% Eurozone 8.2% 7.1% 7.5% 10.1% 11.7% Inflation Rate 2006 2007 2008 2009 2010 Austria 1.7% 2.2% 3.2% 0.6% 1.1% Eurozone 2.2% 2.3% 3.3% 0.6% 0.7% Fiscal Balance 2006 2007 2008 2009 2010 Austria -1.5% -0.4% -0.4% -3.5% -4.7% OECD average -1.3% -1.4% -3.0% -7.2% -8.7% Debt Portfolio 2006 2007 2008 2009 2010 Austria 159.5 161.0 176.4 191.9 207.2 GDP Austria (bn EUR) 257.3 270.8 282.2 280.1 283.9 -8% 2006 2007 2008 2009 2010 Debt/GDP 2006 2007 2008 2009 2010 Austria 62% 59% 63% 69% 73% Eurozone 75% 71% 71% 78% 84% GDP per Capita Source: OECD, WIFO and Ministry of Finance, March 09 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Luxembourg United States Switzerland Netherlands Austria Denmark Belgium United Kingdom Germany Finland Japan Spain EU (27 countries) Czech Republic Portugal Hungary Romania Bulgaria Austria is among the few countries which run a sustainable current account surplus. The current account balance reached 2.9% of GDP in 2008, after 3.2% in 2007 3 . Since 1995, Austrian exports increased by an average 7% rate per annum, which is one of the highest rates across Europe. The competitiveness of the Austrian economy has been improving continuously, due to a favourable development of labor unit costs (average real growth rate of labor unit costs since 2000: Austria -0.8%, Eurozone 0.3%), accompanied by ambitious economic and fiscal reforms. 1 Source: OECD, WIFO March 2009 2 Source: EuroStat forecast, GDP per capita at market prices, comparison to EU-27 average based on purchasing power parity 3 Source: WIFO, March 2009 Children at a creek © Österreich Werbung / Fankhauser Annual Review 2008 | 3
Page 1: Republic of Austria Debt Management
Page 5 and 6: Credit Ratings Austria is rated AAA
Page 7 and 8: Funding Strategy of the Republic of

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