Economy Overview
Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. The Austrian economy also benefits greatly from strong commercial relations, especially in the banking and insurance sectors, with central, eastern, and southeastern Europe. The economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Membership in the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to the new EU economies. The outgoing government has successfully pursued a comprehensive economic reform program, aimed at streamlining government and creating a more competitive business environment, further strengthening Austria's attractiveness as an investment location. It has implemented effective pension reforms; however, lower taxes in 2005-06 led to a small budget deficit in 2006. Weak domestic consumption and slow growth in Europe held the economy to growth rates below 3% in 2002-05. Due to higher growth across Europe, Austria grew 3.3 percent in 2006. To meet increased competition - especially from new EU members and Central European countries - Austria will need to continue restructuring, emphasizing knowledge-based sectors of the economy, and encouraging greater labor flexibility and greater labor participation by its aging population.
Agriculture Products
grains, potatoes, sugar beets, wine, fruit; dairy products, cattle, pigs, poultry; lumber
Industries
construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood processing, paper and paperboard, communications equipment, tourism
Industrial Production Growth Rate
5.7% (2006 est.)
Labor Force
3.52 million (2006 est.)
Electricity production
61.02 billion kWh (2005 est.)
Electricity Consumption
60.25 billion kWh (2005 est.)
Electricity Exports
17.73 billion kWh (2005 est.)
Electricity Imports
20.4 billion kWh (2005 est.)
Economic Aid - Donor
ODA, $681 million (2004)
Unemployment Rate
4.9% (2006 est.)
Population Below Poverty Line
5.9% (2004)
Household Income or Consumption by Percentage Share
Lowest 10%: 3.3%
Highest 10%: 22.5% (2004)
Distribution of Family Income Gini Index
31 (2002)
Budget
Revenues: $154.3 billion
Expenditures: $158.3 billion (2006 est.)
Public Debt
62.1% of GDP (2006 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
$126.3 billion (2005)
Reserves of Foreign Exchange and Gold
$12.91 billion (2006 est.)
Debt External
$594.3 billion (October 2006 est.)
Stock of Direct Foreign Investment at Home
$66.32 billion (2006 est.)
Stock of Direct Foreign Investment Abroad
$74.89 billion (2006 est.)
Exchange Rates
euros per US dollar - 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002)
