The global financial crisis put an end to Austria’s economic expansion. By late 2008, Austria had entered recession, albeit less abruptly than some of the euro area countries, and the economy is set to contract markedly in 2009, experiencing the deepest and most protracted recession since the mid-1950s. Its strong economic links with a number of countries in Central and Eastern Europe pose risks to financial and fiscal stability. However, compared with many other OECD economies, the build-up of domestic imbalances, in the form of over-extended credit and asset prices, has been very limited in Austria. In the face of the financial crisis and deteriorating outlook, action has been taken to stabilise financial markets, boost confidence and support activity.