Economy of Austria

This article needs additional citations for verification. Please help by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources:  –  ·  ·  · scholar · JSTOR (September 2009) (Learn how and when to remove this template message)

Economy of Austria

Danube City, Vienna
Currency	Euro (EUR, €)
Fiscal year	Calendar year
Trade organisations	EU, WTO, OECD
Country group	Developed/Advanced[1] High-income economy[2]
Statistics
Population	8,901,064 (1 January 2020)[3]
GDP	$490 billion (nominal, 2021)[4] $527 billion (PPP, 2021)[4]
GDP rank	26th (nominal, 2019) 44th (PPP, 2020)
GDP growth	2.4% (2018) 1.6% (2019) −6.7% (2020e) 4.6% (2021e)[4]
GDP per capita	$54,820 (nominal, 2021)[4] $58,966 (PPP, 2021)[4]
GDP per capita rank	13th (nominal, 2019) 18th (PPP, 2018)
GDP by sector	agriculture: 1.3% industry: 28.4% services: 70.3% (2017 est.)[5]
Inflation (CPI)	1.2% (2020 est.)[4] 1.5% (2019)[4] 2.1% (2018)[4]
Population below poverty line	16.9% at risk of poverty or social exclusion (AROPE, 2019)[6]
Gini coefficient	27.5 low (2019, Eurostat)[7]
Human Development Index	0.914 very high (2018)[8] (20th) 0.843 very high IHDI (2018)[9]
Labour force	4,559,603 (2019)[10] 76.2% employment rate (Target: 77%; 2018)[11]
Labour force by occupation	agriculture: 0.7% industry: 25.2% services: 74.1% (2017 est.)[5]
Unemployment	5.0% (August 2020)[12] 10.3% youth unemployment (15 to 24 year-olds; July 2020)[13]
Average gross salary	€4,163 / $4,604 monthly (2017)
Average net salary	€2,761 / $3,053 monthly (2017)
Main industries	construction, machinery, vehicles and parts, food, metals, chemicals, lumber and paper, electronics, tourism
Ease-of-doing-business rank	27th (very easy, 2020)[14]
External
Exports	$156.7 billion (2017 est.)[5]
Export goods	machinery and equipment, motor vehicles and parts, manufactured goods, chemicals, iron and steel, foodstuffs
Main export partners	Germany (+) 29.4%  United States (+) 6.3%  Italy (+) 6.2%   Switzerland (+) 5.1%  France (+) 4.8%  Slovakia (+) 4.8% (2017)[5]
Imports	$158.1 billion (2017 est.)[5]
Import goods	machinery and equipment, motor vehicles, chemicals, metal goods, oil and oil products, natural gas; foodstuffs
Main import partners	Germany (+) 41.8%  Italy (+) 5.8%   Switzerland (+) 5.5%  Czech Republic (+) 4.4%  Netherlands (+) 4.2% (2017)[5]
FDI stock	$294.1 billion (31 December 2017 est.)[5] Abroad: $339.7 billion (31 December 2017 est.)[5]
Current account	$7.859 billion (2017 est.)[5]
Gross external debt	$630.8 billion (31 December 2017)[5]
Public finances
Public debt	70.4% of GDP (2019)[15] €280.426 billion (2019)[15]
Budget balance	€2.9 billion surplus (2019)[15] +0.7% of GDP (2019)[15]
Revenues	49.0% of GDP (2019)[15]
Expenses	48.2% of GDP (2019)[15]
Credit rating	Scope:[16] AAA Outlook: Stable
Foreign reserves	$21.57 billion (31 December 2017 est.)[5]
All values, unless otherwise stated, are in US dollars.

The economy of Austria is a developed social market economy, with the country being one of the fourteen richest in the world in terms of GDP (gross domestic product) per capita.^[17] Until the 1980s, many of Austria's largest industry firms were nationalised. In recent years, privatisation has reduced state holdings to a level comparable to other European economies. Labour movements are particularly strong in Austria, and they have a large influence on labour politics. Next to a highly developed industry, international tourism is the most important part of the national economy.

Germany has historically been the main trading partner of Austria, making the Austrian economy vulnerable to rapid changes in the German economy. However, since Austria became a member state of the European Union, it has gained closer ties to other European Union economies. This development reduced its economic dependence on Germany. In addition, Austria's membership in the EU has drawn an influx of foreign investors. They were attracted by Austria's access to the European Single Market and the country's proximity to the aspiring economies of the European Union. Growth in GDP accelerated in recent years, and reached 3.3% in 2006.^[18]

In 2004 Austria was the fourth richest country within the European Union, having a GDP (PPP) per capita of approximately €27,666. At the time, Luxembourg, the Republic of Ireland, and the Netherlands were leading the list.^[19]

Vienna was ranked the fifth richest NUTS-2 region within Europe (see Economy of the European Union), with its GDP reaching €38,632 per capita. It was trailing behind Inner London, Luxembourg, the Brussels-Capital Region and Hamburg.^[19]

Growth had been steady between 2002 and 2006, varying between 1 and 3.3%.^[20] After hitting 0% in 2013, growth had picked up a little. As of 2016, growth was set at 1.5%.^[21]

History[]

hideThis section has multiple issues. Please help or discuss these issues on the talk page. (Learn how and when to remove these template messages) This section needs expansion. You can help by . (December 2010) This section does not cite any sources. Please help by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2009) (Learn how and when to remove this template message) (Learn how and when to remove this template message)

Ever since the end of the World War II, Austria has achieved sustained economic growth. In the soaring 1950s, the rebuilding efforts for Austria lead to an average annual growth rate of more than 5% in real terms and averaged about four-point five percent through most of the 1960s.^[22] Following moderate real GDP growth of 1.7%, 2% and 1.2%, respectively, in 1995, 1996, and 1997, the economy rebounded and with real GDP expansion of 2.9 percent in 1998 and 2.2% in 1999.

Austria became a member of the EU on 1 January 1995.^[23] Membership brought economic benefits and challenges and has drawn an influx of foreign investors attracted by Austria's access to the single European market. Austria also has made progress in generally increasing its international competitiveness. As a member of the economic and monetary union of the European Union (EMU), Austria's economy is closely integrated with other EU member countries, especially with Germany. On 1 January 1999, Austria introduced the new Euro currency for accounting purposes. In January 2002, Euro notes and coins were introduced, replacing those of the Austrian schilling.

Currency[]

This section does not cite any sources. Please help by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2009) (Learn how and when to remove this template message)

In 1999, Austria introduced the single European currency, the euro. With 18 other EU member states it forms the Eurozone.

In Austria, Euros appear as 1999, however all Austrian euro coins introduced in 2002 have this year on it; unlike other countries of the Eurozone where mint year is minted in the coin. Eight different designs, one per face value, were selected for the Austrian coins. In 2007, in order to adopt the new common map like the rest of the Eurozone countries, Austria changed the common side of its coins.

Before adopting the Euro in 2002 Austria had maintained use of the Austrian schilling which was first established in December 1924. The Schilling was abolished in the wake of the Anschluss in 1938 and has been reintroduced after the end of the World War II in November 1945.

Austria has one of the richest collection of collectors' coins in the Eurozone, with face value ranging from 10 to 100 euro (although a 100,000 euro coin was exceptionally minted in 2004). These coins are a legacy of an old national practice of minting of silver and gold coins. Unlike normal issues, these coins are not legal tender in all the eurozone. For instance, a €5 Austrian commemorative coin cannot be used in any other country.

Privatisation, state participation and labour movements[]

This section does not cite any sources. Please help by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2009) (Learn how and when to remove this template message)

Many of the country's largest firms were nationalised in the early post-war period to protect them from Soviet takeover as war reparations. For many years, the government and its state-owned industries conglomerate played a very important role in the Austrian economy. However, starting in the early 1990s, the group was broken apart, state-owned firms started to operate largely as private businesses, and a great number of these firms were wholly or partially privatised. The government still operates some firms, state monopolies, utilities, and services. In the aftermath of the financial crisis of 2007–2008 two banks where nationalised. Since 2019 the Österreichische Industrieholding (ÖBAG) administers the investments of the Republic of Austria in partially or entirely nationalized companies, but came under strong criticism after leaked messages showed how Thomas Schmidt had a say in the appointment of the supervisory board and became sole director. Austria enjoys well-developed industry, banking, transportation, services, and commercial facilities.

Austria has a strong labour movement. The Austrian Trade Union Federation (ÖGB) comprises constituent unions with a total membership of about 1.5 million—more than half the country's wage and salary earners. Since 1945, the ÖGB has pursued a moderate, consensus-oriented wage policy, cooperating with industry, agriculture, and the government on a broad range of social and economic issues in what is known as Austria's "social partnership". The ÖGB has often opposed the Schüssel government's programme for budget consolidation, social reform, and improving the business climate, and indications are rising that Austria's peaceful social climate could become more confrontational.

Agriculture, industry and services[]

Cows near top of mountain Schneeberg

Austrian farms, like those of other west European mountainous countries, are small and fragmented, and production is relatively expensive. Since Austria's becoming a member of the EU in 1995, the Austrian agricultural sector has been undergoing substantial reform under the EU's Common Agricultural Policy (CAP). Although Austrian farmers provide about 80% of domestic food requirements, the agricultural contribution to gross domestic product (GDP) has declined since 1950 to less than 3%.

Although some industries are global competitors, such as several iron and steel works, chemical plants and oil corporations that are large industrial enterprises employing thousands of people, most industrial and commercial enterprises in Austria are relatively small on an international scale.

Kitzbühel, one of Austria's famous winter tourist cities

Most important for Austria is the service sector generating the vast majority of Austria's GDP. Vienna has grown into a finance and consulting metropole and has established itself as the door to the East within the last decades. Viennese law firms and banks are among the leading corporations in business with the new EU member states. Tourism is very important for Austria's economy, accounting for around 10 percent of Austria's GDP.^[24] In 2001, Austria was the tenth most visited country in the world with over 18.2 million tourists. Previously, dependency on German guests made this sector of the Austrian economy very dependent on German economy. However recent developments have brought a change, especially since winter ski resorts such as Arlberg or Kitzbühel are now more and more frequented by Eastern Europeans, Russians and Americans.

Austria produced in 2018:

• 2.3 million tons of sugar beet (the beet is used to manufacture sugar and ethanol);
• 2.1 million tons of maize;
• 1.3 million tons of wheat;
• 697 thousand tons of potato;
• 695 thousand tons of barley;
• 387 thousand tons of apple;
• 367 thousand tons of grape;
• 278 thousand tons of triticale;
• 184 thousand tons of soybean;
• 177 thousand tons of rye (12th largest world producer);
• 132 thousand tons of onion;
• 120 thousand tons of rapeseed;
• 111 thousand tons of pear;

In addition to smaller productions of other agricultural products.^[25]

Health care services[]

This section needs expansion. You can help by . (December 2010)

Austrian health care spending for 1970 to 2007 compared with other nations

Austria's health care system was developed alongside other social welfare programmes by the social democrats in Vienna initially.^[26]

Trade position[]

This section does not cite any sources. Please help by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2009) (Learn how and when to remove this template message)

Trade with other EU countries accounts for almost 66% of Austrian imports and exports. Expanding trade and investment in the emerging markets of central and eastern Europe is a major element of Austrian economic activity. Trade with these countries accounts for almost 14% of Austrian imports and exports,^[27] and Austrian firms have sizable investments in and continue to move labour-intensive, low-tech production to these countries. Although the big investment boom has waned, Austria still has the potential to attract EU firms seeking convenient access to these developing markets.

Mergers and acquisitions[]

Companies and investors from Austria are active in mergers and acquisitions (M&A). Since 1991, more than 7,183 mergers & acquisitions transactions have been announced with a known total value of 261.6 bil. EUR. In 2017, over 245 deals with a total value of over 12.9 bil. EUR have taken place.^[28] They are not only active in national deals, but also as important investors in cross-border M&A abroad, with Germany being the most important partner. 854 German companies have been acquired by Austrian parant companies (outbound) so far.^[29]

The industry with the largest M&A activity in Austria in terms of transaction value has been the financial sector, whereas the industry with the largest number of transactions has been Industrials - representing 19.2%.

Data[]

The following table shows the main economic indicators in 1980–2018. Inflation under 2% is in green.^[30][31]

Year	GDP (in bil. Euro)	GDP per capita (in Euro)	GDP growth (real)	Inflation rate (in Percent)	Unemployment (in Percent)	Government debt (in % of GDP)
1980	76.0	10.076	2.3%	6.3%	1.6%	n/a
1981	80.9	10,705	−0.1%	6.8%	2.2%	n/a
1982	86.3	11,477	1.9%	5.4%	3.1%	n/a
1983	92.5	12,266	2.8%	3.3%	3.7%	n/a
1984	97.1	12,875	0.3%	5.7%	3.8%	n/a
1985	102.4	13,561	2.2%	3.2%	3.6%	n/a
1986	107.6	14,240	2.3%	1.7%	3.1%	n/a
1987	111.7	14,765	1.7%	1.4%	3.8%	n/a
1988	119.6	15,789	1.0%	1.9%	2.7%	57.5%
1989	128.0	16,849	3.9%	2.2%	2.3%	56.3%
1990	137.5	17,989	4.3%	2.8%	2.7%	55.9%
1991	147.4	19,121	3.4%	3.1%	3.2%	56.1%
1992	155,8	19.972	2,0%	3,4%	3,3%	56,0%
1993	160.9	20,412	0.5%	3.2%	4.0%	60.6%
1994	168.9	21,305	2.4%	2.7%	3.9%	63.7%
1995	176.6	22,216	2.7%	1.6%	4.2%	67.9%
1996	182.5	22,935	2.4%	1.8%	4.7%	67.8%
1997	188.7	23,685	1.9%	1.2%	4.8%	63.1%
1998	196.3	24,615	3.6%	0.8%	4.7%	68.8%
1999	203.9	25,506	3.6%	0.5%	4.1%	61.1%
2000	213.6	26,662	3.4%	2.0%	3.9%	65.7%
2001	220.5	27,420	1.3%	2.3%	4.0%	66.4%
2002	226.7	28,054	1.7%	4.4%	4.4%	67.0%
2003	231.9	28,561	0.9%	1.3%	4.8%	64.9%
2004	242.3	29,665	2.7%	2.0%	5.5%	64.8%
2005	254.1	30,890	2.2%	2.1%	5.7%	68.3%
2006	267.8	32,393	3.5%	1.8%	5.2%	67.0%
2007	284.0	34,234	3.7%	2.2%	4.9%	64.7%
2008	293.8	35,301	1.5%	3.2%	4.1%	68.4%
2009	288.0	34,531	−3.8%	0.4%	5.3%	79.6%
2010	295.9	35,390	1.8%	1.7%	4.8%	82.4%
2011	310.1	36,971	2.9%	3.5%	4.6%	82.2%
2012	318.7	37,816	0.7%	2.6%	4.9%	81.6%
2013	323.9	38,209	0.0%	2.1%	5.3%	81.0%
2014	333.1	38,992	0.7%	1.5%	5.6%	83.8%
2015	344.3	39,893	1.1%	0.8%	5.7%	84.3%
2016	356.2	40,760	2.0%	1.0%	6.0%	83.7%
2017	369.9	41,964	2.6%	2.2%	5.5%	78.8%
2018	387.4	43,598	2.7%	2.1%	4.9%	74.2%

See also[]

• List of Austrian states by GDP
• List of largest Austrian companies
• Austrian Business Agency
• Economy of Europe

References[]

External links[]

• Media related to Economy of Austria at Wikimedia Commons
• ATX-INDEX VIENNA (%5EATX)
• Article by Nicholas Vardy, Global Investment Expert, on Austria's Economic Growth into 2006
• Comprehensive current and historical economic data
• World Bank Summary Trade Statistics Austria
• Tariffs applied by Austria as provided by ITC's |ITC Market Access Map^{[permanent dead link]}, an online database of customs tariffs and market requirements

This article needs to be updated. Please help update this article to reflect recent events or newly available information. (August 2018)