Austria: country overview

Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.

Austria

Year of EU entry: 1995

Member of Schengen area:Yes

Political system: Federal republic

Capital city: Vienna

Total area: 83 870 km²

Population: 8.3 million

Currency: euro

Listen to the official EU language:  German

Economy Overview

Austria, with its well-developed market economy, skilled labor force, and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the international financial crisis of 2008 and subsequent global economic downturn led to a sharp but brief recession. Austrian GDP contracted 3.9% in 2009 but saw positive growth of about 2% in 2010 and 3% in 2011. Unemployment did not rise as steeply in Austria as elsewhere in Europe, partly because the government subsidized reduced working hour schemes to allow companies to retain employees. Stabilization measures, stimulus spending, and an income tax reform pushed the budget deficit to 4.7% in 2010 and 3.6% in 2011, from only about 1.3% in 2008. The international financial crisis of 2008 caused difficulties for Austria's largest banks whose extensive operations in central, eastern, and southeastern Europe faced large losses. The government provided bank support - including in some instances, nationalization - to support aggregate demand and stabilize the banking system. Austria's fiscal position compares favorably with other euro-zone countries, but it faces considerable external risks, such as Austrian banks' continued high exposure to central and eastern Europe as well as political and economic uncertainties caused by the European sovereign debt crisis. The government's efforts in 2011 to pass a constitutional amendment limiting public debt to 60% of GDP by 2020 faced resistance from opposition parties in parliament.

Source: CIA - The World Factbook

• Ausria country guide

• The Commission's Representation in Austria

Useful links

The Commission's Representation in Austria

European Parliament office in Austria

Federal Chancellery

Tourist information

Source: European Commission