Economy of Austria

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.[22] 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.

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.

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.

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.[23] 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.[24]

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.[25]

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.

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.[26] 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.[27]

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%.

The following table shows the main economic indicators in 1980–2018. Inflation under 2% is in green.[28][29]

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%

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

• 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, an online database of customs tariffs and market requirements