The Impact of the Financial Crisis of 2008 on Austria and its Economy

Abstract

This paper examines the extent of the impact of the financial crisis of 2008 on Austria and its economy. This is done by analyzing economic indicators of a recession in Austria using the United States as a reference point. The comparison is done through macroeconomic effects including GDP growth rate and net trade balance, Austrian banks’ leverage ratios and interest rates on loans, non-bank Austrian firms’ return on stock and co-movements with the US market, and effects on individuals through change in the unemployment rate and household investments. Rinde concludes that Austria experienced a brief recession lasting close to two years.