Austria Economy 2008

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.

GDP (purchasing power parity):
$319.7 billion (2007 est.)

GDP (official exchange rate):
$328.4 billion (2007 est.)

GDP - real growth rate:
3.3% (2007 est.)

GDP - per capita (PPP):
$39,000 (2007 est.)

GDP - composition by sector:
agriculture: 1.6%
industry: 30.4%
services: 67.3% (2007 est.)

Labor force:
3.56 million (2007 est.)

Labor force - by occupation:
agriculture: 3%
industry: 27%
services: 70% (2005 est.)

Unemployment rate:
4.3% (2007 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:
26 (2005)

Inflation rate (consumer prices):
1.9% (2007 est.)

Investment (gross fixed):
21.4% of GDP (2007 est.)

Budget:
revenues: $176.4 billion
expenditures: $178.3 billion (2007 est.)

Public debt:
61% of GDP (2007 est.)

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:
2.5% (2007 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.)

Oil - production:
23,320 bbl/day (2005)

Oil - consumption:
295,100 bbl/day (2005 est.)

Oil - exports:
34,680 bbl/day (2004)

Oil - imports:
157,500 bbl/day (2005)

Oil - proved reserves:
62 million bbl (1 January 2006 est.)

natural gas - production:
1.57 billion cu m (2005)

natural gas - consumption:
9.217 billion cu m (2005)

natural gas - exports:
936.1 million cu m (2005)

natural gas - imports:
9.063 billion cu m (2005)

natural gas - proved reserves:
14.39 billion cu m (1 January 2006 est.)

Current account balance:
$12.61 billion (2007 est.)

Exports:
$158.3 billion f.o.b. (2007 est.)

Exports - commodities:
machinery and equipment, motor vehicles and parts, paper and paperboard, metal goods, chemicals, iron and steel, textiles, foodstuffs

Exports - partners:
Germany 30.2%, Italy 9%, US 5.9%, Switzerland 4.7% (2006)

Imports:
$157.4 billion f.o.b. (2007 est.)

Imports - partners:
Germany 45.5%, Italy 7%, Switzerland 4.5%, Netherlands 4.1% (2006)

Economic aid - donor:
ODA, $681 million (2004)

Reserves of foreign exchange and gold:
$12.91 billion (2006 est.)

Debt - external:
$752.5 billion (30 June 2007)

Stock of direct foreign investment - at home:
$66.32 billion (2006 est.)

Stock of direct foreign investment - abroad:
$74.89 billion (2006 est.)

Market value of publicly traded shares:
$126.3 billion (2005)

Currency (code):
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Exchange rates:
euros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)