Economy of Austria

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Economy of Austria
Vienna DC.JPG
CurrencyEuro
Calendar year
Trade organisations
WTO, OECD and EU
Statistics
GDP$400.5 billion (Norminal) (2017 est.)
GDP growth
5.0% (2017 est.)
GDP per capita
€36,640 (2012)
GDP by sector
agriculture: 1.7%; industry: 32.3%; services: 65.8% (2009 est.)
2.0% (2017 est.)
Population below poverty line
5% (2017)[1]
0.272 (2016)[2]
Labour force
5.534 million (2012 est.)
Labour force by occupation
agriculture: 5.5%; industry: 27.5%; services: 67% (2005 est.)
UnemploymentNegative increase5.5% (2017)[3]
Average gross salary
€3,997/$5,395, monthly (2006)[4]
€2,043/$2,758, monthly (2006)[4]
Main industries
construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood processing, paper and paperboard, communications equipment, tourism
20th (2018)[5]
External
ExportsIncrease$161.8 billion (2017)[6]
Export goods
machinery and equipment, motor vehicles and parts, paper and paperboard, metal goods, chemicals, iron and steel, textiles, foodstuffs
Main export partners
 Germany 29.4%
 United States 6.3%
 Italy 6.2%
  Switzerland 5.1%
 France 4.8%
 Slovakia 4.8% (2017)[7]
ImportsIncrease$168.3 billion (2017)[8]
Import goods
machinery and equipment, motor vehicles, chemicals, metal goods, oil and oil products; foodstuffs
Main import partners
 Germany 41.8%
 Italy 5.8%
  Switzerland 5.5%
 Czech Republic 4.4%
 Netherlands 4.2% (2017)[9]
Positive decrease $630.8 billion (31 December 2017)[10]
Public finances
85.8% of GDP (2016)
Revenues$191.7 billion (2012 est.)
Expenses$204.1 billion (2012 est.)
Foreign reserves
$26.5 billion (31 December 2012 est.)[11]
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

Austria is one of the 14 richest countries in the world in terms of GDP (Gross domestic product) per capita,[12] has a well-developed social market economy, and a high standard of living. Until the 1980s, many of Austria's largest industry firms were nationalised; in recent years, however, privatisation has reduced state holdings to a level comparable to other European economies. Labour movements are particularly strong in Austria and have 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 it 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, reducing its economic dependence on Germany. In addition, 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 aspiring economies of the European Union. Growth in GDP accelerated in recent years and reached 3.3% in 2006.[13]

In 2004 Austria was the fourth richest country within the European Union, having a GDP (PPP) per capita of approximately €27,666, with Luxembourg, Ireland, and Netherlands leading the list.[14]

Vienna was ranked the fifth richest NUTS-2 region within Europe (see Economy of Europe) with GDP reaching €38,632 per capita, just behind Inner London, Luxembourg, Brussels-Capital Region and Hamburg.[14]

Growth has been steady between 2002–2006 varying between 1 and 3.3%.[15] After hitting 0% in 2013, growth has picked up a little and as of 2016 sits at 1.5%.[16]

History[edit]

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. 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.[17] 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[edit]

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[edit]

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. Although the government's privatisation work in past years has been very successful, it still operates some firms, state monopolies, utilities, and services. The new government has presented an ambitious privatisation programme, which, if implemented, will considerably reduce government participation in the economy. 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[edit]

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.[18] 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.

Health care services[edit]

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.[19]

Trade position[edit]


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, 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[edit]

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.[20] 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.[21]

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[edit]

The following table shows the main economic indicators in 1980–2017. Inflation under 2 % is in green.[22]

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 Increase2.3 % Negative increase6.3 % 1.6 % n/a
1981 Increase80.9 Increase10,705 Decrease−0.1 % Negative increase6.8 % Negative increase2.2 % n/a
1982 Increase86.3 Increase11,477 Increase1.9 % Negative increase5.4 % Negative increase3.1 % n/a
1983 Increase92.5 Increase12,266 Increase2.8 % Negative increase3.3 % Negative increase3.7 % n/a
1984 Increase97.1 Increase12,875 Increase0.3 % Negative increase5.7 % Negative increase3.8 % n/a
1985 Increase102.4 Increase13,561 Increase2.2 % Negative increase3.2 % Positive decrease3.6 % n/a
1986 Increase107.6 Increase14,240 Increase2.3 % Increase1.7 % Positive decrease3.1 % n/a
1987 Increase111.7 Increase14,765 Increase1.7 % Increase1.4 % Negative increase3.8 % n/a
1988 Increase119.6 Increase15,789 Increase1.0 % Increase1.9 % Positive decrease2.7 % 57.5 %
1989 Increase128.0 Increase16,849 Increase3.9 % Negative increase2.2 % Positive decrease2.3 % Positive decrease56.3 %
1990 Increase137.5 Increase17,989 Increase4.3 % Negative increase2.8 % Negative increase2.7 % Positive decrease55.9 %
1991 Increase147.4 Increase19,121 Increase3.4 % Negative increase3.1 % Negative increase3.2 % Negative increase56.1 %
1992 Increase155,8 Increase19.972 Increase2,0 % Negative increase3,4 % Negative increase3,3 % Positive decrease56,0 %
1993 Increase160.9 Increase20,412 Increase0.5 % Negative increase3.2 % Negative increase4.0 % Negative increase60.6 %
1994 Increase168.9 Increase21,305 Increase2.4 % Negative increase2.7 % Positive decrease3.9 % Negative increase63.7 %
1995 Increase176.6 Increase22,216 Increase2.7 % Increase1.6 % Negative increase4.2 % Negative increase67.9 %
1996 Increase182.5 Increase22,935 Increase2.4 % Increase1.8 % Negative increase4.7 % Positive decrease67.8 %
1997 Increase188.7 Increase23,685 Increase1.9 % Increase1.2 % Negative increase4.8 % Positive decrease63.1 %
1998 Increase196.3 Increase24,615 Increase3.6 % Increase0.8 % Positive decrease4.7 % Positive decrease68.8 %
1999 Increase203.9 Increase25,506 Increase3.6 % Increase0.5 % Positive decrease4.1 % Positive decrease61.1 %
2000 Increase213.6 Increase26,662 Increase3.4 % Increase2.0 % Positive decrease3.9 % Negative increase65.7 %
2001 Increase220.5 Increase27,420 Increase1.3 % Negative increase2.3 % Negative increase4.0 % Negative increase66.4 %
2002 Increase226.7 Increase28,054 Increase1.7 % Negative increase4.4 % Negative increase4.4 % Negative increase67.0 %
2003 Increase231.9 Increase28,561 Increase0.9 % Increase1.3 % Negative increase4.8 % Positive decrease64.9 %
2004 Increase242.3 Increase29,665 Increase2.7 % Increase2.0 % Negative increase5.5 % Positive decrease64.8 %
2005 Increase254.1 Increase30,890 Increase2.2 % Negative increase2.1 % Negative increase5.7 % Negative increase68.3 %
2006 Increase267.8 Increase32,393 Increase3.5 % Increase1.8 % Positive decrease5.2 % Positive decrease67.0 %
2007 Increase284.0 Increase34,234 Increase3.7 % Negative increase2.2 % Positive decrease4.9 % Positive decrease64.7 %
2008 Increase293.8 Increase35,301 Increase1.5 % Negative increase3.2 % Positive decrease4.1 % Negative increase68.4 %
2009 Decrease288.0 Decrease34,531 Decrease−3.8 % Increase0.4 % Negative increase5.3 % Negative increase79.6 %
2010 Increase295.9 Increase35,390 Increase1.8 % Increase1.7 % Positive decrease4.8 % Negative increase82.4 %
2011 Increase310.1 Increase36,971 Increase2.9 % Negative increase3.5 % Positive decrease4.6 % Positive decrease82.2 %
2012 Increase318.7 Increase37,816 Increase0.7 % Negative increase2.6 % Negative increase4.9 % Positive decrease81.6 %
2013 Increase323.9 Increase38,209 Steady0.0 % Negative increase2.1 % Negative increase5.3 % Positive decrease81.0 %
2014 Increase333.1 Increase38,982 Increase0.8 % Increase1.5 % Negative increase5.6 % Negative increase83.8 %
2015 Increase344.5 Increase39,920 Increase1.1 % Increase0.8 % Negative increase5.7 % Negative increase84.3 %
2016 Increase353.3 Increase40,424 Increase1.5 % Increase1.0 % Negative increase6.0 % Positive decrease83.7 %
2017 Increase369.2 Increase41,881 Increase2.9 % Negative increase2.2 % Positive decrease5.5 % Positive decrease78.8 %

See also[edit]

References[edit]

  1. ^ "Austria Population below poverty line - Economy". Retrieved 15 September 2016.
  2. ^ "Gini coefficient of equivalised disposable income (source: SILC)". Luxembourg: Eurostat. 15 June 2017. Retrieved 24 June 2017.
  3. ^ "The World Factbook - Central Intelligence Agency". CIA World Factbook. 2017. Country Comparison :: Unemployment Rate. Retrieved 8 October 2018.
  4. ^ a b Wages and Taxes for the Average Joe in the EU 2
  5. ^ "Ease of Doing Business in Austria". Doingbusiness.org. Retrieved 2017-11-21.
  6. ^ "The World Factbook - Central Intelligence Agency". CIA World Factbook. 2017. Country Comparison :: Exports. Retrieved 2018-10-08.
  7. ^ "The World Factbook - Central Intelligence Agency". CIA World Factbook. 2017. Field Listing :: Export Partners. Retrieved 2018-10-08.
  8. ^ "The World Factbook - Central Intelligence Agency". CIA World Factbook. 2017. Country Comparison :: Imports. Retrieved 2018-10-08.
  9. ^ "The World Factbook - Central Intelligence Agency". CIA World Factbook. 2017. Field Listing :: Import Partners. Retrieved 2018-10-08.
  10. ^ "The World Factbook - Central Intelligence Agency". Country Comparison :: Debt - External. Retrieved 2018-10-08.
  11. ^ "International Reserves and Foreign Currency Liquidity – AUSTRIA". International Monetary Fund. 6 May 2011. Retrieved 31 May 2011.
  12. ^ "Austria". International Monetary Fund. Retrieved 22 April 2009.
  13. ^ Real GDP Growth – Expenditure Side, provided by the Austrian National Bank (in German)
  14. ^ a b (in English) Regional GDP per inhabitant in the EU27 Archived 26 March 2009 at the Wayback Machine., provided by Eurostat
  15. ^ (in English) Real GDP Growth3 – Expenditure Side, provided by the Austrian National Bank
  16. ^ Austrian Economic Chamber (July 2018). "GDP Growth in Austria" (PDF). Retrieved 14 August 2018.
  17. ^ "Austria in the EU". Austrian Embassy Washington. Retrieved October 8, 2018.
  18. ^ "Trade and Industry in Austria, Exports, Tourism". www.austria.info. 2007. Archived from the original on 27 November 2007. Retrieved 20 December 2007.
  19. ^ Austria. European Observatory on Health Care Systems
  20. ^ "M&A Statistics by Countries - Institute for Mergers, Acquisitions and Alliances (IMAA)". Institute for Mergers, Acquisitions and Alliances (IMAA). Retrieved 2018-03-01.
  21. ^ "Mergers & Acquisitions in Austria". Institute for Mergers, Acquisitions and Alliances (IMAA). Retrieved 2018-03-01.
  22. ^ "Report for Selected Countries and Subjects". Retrieved 2018-09-01.

External links[edit]