Austria

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The implementation of economic reforms by successive governments and strong growth in exports make Austria the preferred investment destination. The economy slowed down between 2001 and 2003. The country registered a GDP growth rate of 1.1% in 2003. It was the longest slow growth period that the country had known since second World War. The country’s economic situation has subsequently recovered due to the rapid development of exports which respond to the strong global economic growth, and in particular to that of Germany, its main trade partner. The growth rate increased both in 2006 and 2007, but decreased in 2008. The global financial crisis has heavily affected Austria, which made significant investments in Central and Eastern European countries. In effect, Austrian banks have invested euros 250 billion, which translates to 70% of the GDP, in the East. Austria has therefore created a domino effect from the fact that countries like Hungary were close to bankcruptcy. Thus the country has known the worst recession of its history in 2009. The situation should improve from 2010.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	323.07	371.22e	415.32e	361.79e	366.68
GDP (constant prices, annual % change)	3.4	3.1e	1.8e	-3.0	0.2
GDP per capita (USD)	39,099	44,852e	50,098	43,570	44,087e
General government balance (in % of GDP)	-1.7	-0.5	-0.4	-3.5e	-4.2
Inflation rate (%)	1.7	2.2	3.2e	0.5	1.3e
Unemployment rate (% of the labor force)	4.8	4.4	3.8	5.4	6.2
Current Account (billions USD)	7.90	12.01	12.02	4.81	4.80
Current Account (in % of GDP)	2.4	3.2e	2.9	1.3e	1.3e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The agricultural sector contributes about 2% of the GDP and employs nearly 6% of the active population. Cattle farming and viticulture are the country's main agricultural activities. Organic agriculture is developing rapidly. It currently represents 10% of the agricultural production. Austria benefits from significant European Union subsidies as provided by the Common Agricultural Policy .

The main industrial sectors are the metalworking industry, electrochemistry and engineering, even though most of the companies in these sectors are relatively small on the international scale. The country has very little mineral resources like iron, lead and copper. The government started liberalizing the energy sector (namely electricity and natural gas), from 2003, thus paving the way for privatization.

The tertiary sector contributes around 70% of the GDP and employs two-thirds of the country's active population. Tourism is well developed. There are nearly 17 million tourists visiting Austria annually.

In 2008, the global crisis affected the Austrian industrial sector by reducing the demand on industrial products which were essentially for foreign markets.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	5.5	27.5	66.7
Value added (in % of GDP)	1.9	31.2	66.9
Value added (annual % change)	0.9	5.7	2.4

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Euro (EUR) - Average annual exchange rate for 1 USD	0.81	0.80	0.80	0.73	0.68

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 71.2/100
Position:: mostly free
World Rank:: 23 out of 179
Regional Rank:: 11 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

The Austrian economy is heavily dependant on foreign trade which accounts for more than 95% of its GDP. Trade with European Union countries accounts for about 70% of the total trade. Austrian exports suffered significantly from the global crisis and the Austrian trade deficit reached its highest level since the beginning of the 2nd millenium at Euros 1.8 billion in 2008.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	89,799	110,905	120,977	133,419	160,302
Exports of goods (millions USD)	88,105	109,875	119,228	133,844	162,147
Imports of services (millions USD)	23,738	27,986	30,730	33,514	39,033
Exports of services (millions USD)	32,455	37,945	42,589	46,112	55,736
Imports of goods and services (annual % change)	5.3	6.8	5.0	5.6	6.6
Exports of goods and services (annual % change)	2.3	8.2	6.2	7.5	9.1
Imports of goods and services (in % of GDP)	45.2	46.7	48.5	50.4	51.6
Exports of goods and services (in % of GDP)	48.5	51.0	53.4	56.1	58.9
Trade Balance (millions USD)	-1,694	-1,029	-1,750	426	1,846
Trade Balance (including service) (millions USD)	7,023	8,930	10,109	13,024	18,549
Foreign trade (in % of GDP)	93.8	97.8	102.0	106.6	110.4

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Germany	29.7%
Italy	8.6%
United States	4.4%
Switzerland	4.2%
France	3.8%
Czech Republic	3.7%
Hungary	3.6%
United Kingdom	3.2%
Poland	2.8%
Russia	2.5%
Spain	2.4%
Slovenia	2.2%
Romania	2.1%
Slovakia	2.0%
Netherlands	1.8%
China	1.6%
Belgium	1.5%
Croatia	1.3%
Sweden	1.1%
Japan	0.9%
See more countries	49.3%

Main suppliers (% of imports)	2008
Germany	40.5%
Italy	6.9%
Switzerland	4.4%
China	4.2%
Czech Republic	3.6%
France	3.1%
United States	2.9%
Netherlands	2.8%
Hungary	2.7%
Russia	2.1%
Slovakia	2.0%
Poland	1.8%
United Kingdom	1.8%
Belgium	1.6%
Japan	1.6%
Spain	1.4%
Sweden	1.2%
Slovenia	1.0%
Kazakhstan	0.9%
Turkey	0.8%
See more countries	40.5%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	18.6%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	10.5%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.2%
Iron and steelIron and steel	5.4%
Plastics and articles thereofPlastics and articles thereof	4.2%
Pharmaceutical productsPharmaceutical products	4.0%
Articles of iron or steelArticles of iron or steel	4.0%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	3.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	3.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	3.1%
Aluminium and articles thereofAluminium and articles thereof	2.2%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.0%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	1.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	1.0%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	1.0%
Copper and articles thereofCopper and articles thereof	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.8%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.8%
Meat and edible meat offalMeat and edible meat offal	0.8%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.8%
Rubber and articles thereofRubber and articles thereof	0.7%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.7%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.7%
Organic chemicalsOrganic chemicals	0.6%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.6%
Glass and glasswareGlass and glassware	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.5%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.4%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
CerealsCereals	0.3%
Ceramic productsCeramic products	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
CottonCotton	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
Sugars and sugar confectionerySugars and sugar confectionery	0.1%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.1%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
Live animalsLive animals	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
See more products	51.1%

Main imports (% of imports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.9%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	12.0%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.0%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.2%
Plastics and articles thereofPlastics and articles thereof	4.1%
Iron and steelIron and steel	3.7%
Articles of iron or steelArticles of iron or steel	3.0%
Pharmaceutical productsPharmaceutical products	3.0%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.1%
Aluminium and articles thereofAluminium and articles thereof	1.9%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.7%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.6%
Organic chemicalsOrganic chemicals	1.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.4%
Copper and articles thereofCopper and articles thereof	1.2%
Rubber and articles thereofRubber and articles thereof	1.1%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.1%
Miscellaneous chemical productsMiscellaneous chemical products	1.0%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.9%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.8%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.7%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.7%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.7%
Ores, slag and ashOres, slag and ash	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Glass and glasswareGlass and glassware	0.6%
Meat and edible meat offalMeat and edible meat offal	0.6%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.6%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.6%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.6%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.5%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.5%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.4%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Ceramic productsCeramic products	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.3%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.3%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.2%
Nickel and articles thereofNickel and articles thereof	0.2%
FertilizersFertilizers	0.2%
Zinc and articles thereofZinc and articles thereof	0.2%
Live animalsLive animals	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
CerealsCereals	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
CottonCotton	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Man-made filamentsMan-made filaments	0.1%
Man-made staple fibresMan-made staple fibres	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
See more products	50.8%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Federal Ministry of Economy and Labour
Federal Ministry of Finance
Federal Ministry of Agriculture, Forestry, Environment and Water Management
Federal Ministry of Foreign Affairs
Statistical Office: The Austrian Statistical Central Office
Central Bank: Central Bank of Austria
Stock Exchange: The Vienna Stock Exchange
Search Engines: Yahoo Austria!
Austria www
Austronaut
Austrosearch
Excite
Infopoint
Sharelook
Webwizard
Economic portals: Trend Magazin
Industrie Magazin

Political outline

Executive Power: President is the chief of the state and the Federal Chancellor is the head of the government. Chancellor enjoys the executive powers. President is elected by direct popular vote for a six-year term and the Chancellor is traditionally chosen by the President from the majority party in the National Council. Council of Ministers is chosen by the President on the advice of the Chancellor.
Legislative Power: The legislature in Austria is bicameral. The parliament consists of two chambers: National Council (the lower house), its members elected by direct popular vote to serve four-year terms, and Federal Council (the upper house) with its members elected by provincial parliaments to serve five- or six-year terms. President can dissolve the National Council on recommendation of the Chancellor. The Federal Council only reviews legislation passed by the National Council and can delay but not veto its enactment. Most authority, including that of the police, rests with the federal government, but the states have considerable responsibility for welfare matters and local administration.
Main political parties: The major political parties in the country are: OVP (the conservative People's Party), SPO (Social Democratic Party), FPO (the right-wing Freedom Party), and the Greens.
OVP finds support from farmers, large and small business owners and some Catholic groups, mostly in the rural regions of Austria; while as the SPO traditionally draws its constituency from blue- and white-collar workers.
Current political leaders: President: Heinz FISCHER (since July 2004) – SPO
Chancellor: Werner FAYMANN (since Decemer 2008)
Vice Chancellor:Josef Pröll (since Decembre 2008) - OVP
Next election dates: Presidential election: April 2010
National Council election: In the fall of 2010-2011

Indicator of freedom of the press

World Rank:: 14/173
Evolution:: 2 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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