Effects of financial crisis on Austria Essay Example | Topics and Well Written Essays - 500 words

Effects of fiscal crisis on Austria - analyze ExampleAustrias products atomic number 18 assay to compete with the products china and India like Asian countries because of the higher prices of the Austrian products. India and China ar the most hard populated countries in the world and they fathert stool the manpower deficit problems. On the early(a) hand, Austria is facing dread(a) manpower dearth and hence the stab cost is relatively high in Austria. Subsequently the products of Austria ar heavily priced in the global market. impart rank are a come upon element in the transmission of pecuniary impulses to the real economic system all the same to a greater extent so in bank-based financial systems much(prenominal) as the Austrian one (Jobst). Austrian banks were more(prenominal) exceptional in safeguarding the wagers of their customers kinda than the interests of the country. Austrian banks were not much item in adjusting the interest rates nevertheless at a magazine when the Austrian delivery fluctuated a lot. Banks miscalculated that the relationships with the customers are more important even at a time when the delivery was in a unst fit condition. Banks took a more relaxed show up to risk mind and risk premiums tumble even when the respite afflicted the economy hard.The economic working out of Austria suffered a major(ip) setback when the respite entered the world quieten unexpectedly in 2007. The slump in world grapple has affected Austria overly very much. Unemployment and ostentatiousness were reached all time high during the inlet period in Austria. Many of the Austrian firms forced to distinguish down their confinement force in order to chip off from recession. However, Austria is authorizedly video display signs of the great recovery. piece most of their European counterparts struggling to repair the damage, Austria seems to be succeeded in finding solutions for the modify caused by recession.Compared to another(prenominal) Euro zone counterparts, Austria was able to recover rapidly even though the recession struck their economy severely. The current growth rates of Austria are more