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 and 2007. Boosted by strong exports, growth nevertheless reached 3.3% in both 2006 and 2007, although the economy may slow in 2008 because of the strong euro, high oil prices, and problems in international financial markets. 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% (2007 est.)
Labor Force
3.566 million (2007 est.)
Electricity production
59.31 billion kWh (2007 est.)
Electricity Consumption
62.35 billion kWh (2006 est.)
Electricity Exports
15.51 billion kWh (2007 est.)
Electricity Imports
22.13 billion kWh (2007 est.)
Unemployment Rate
4.4% (2007 est.)
Population Below Poverty Line
Household Income or Consumption by Percentage Share
Lowest 10%: 3.3%
Highest 10%: 22.5% (2004)
Distribution of Family Income Gini Index
26 (2005)
Budget
Revenues: $177.5 billion
Expenditures: $179.9 billion (2007 est.)
Public Debt
59.1% of GDP (2007 est.)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$599.5 billion (31 December 2007)
Market Value of Publicly Traded Shares
$126.3 billion (2005)
Reserves of Foreign Exchange and Gold
$18.22 billion (2006 est.)
Debt External
$752.5 billion (30 June 2007)
Stock of Direct Foreign Investment at Home
$222.9 billion (2007 est.)
Stock of Direct Foreign Investment Abroad
$208.1 billion (2007 est.)
Exchange Rates
euros (EUR) per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)
