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Economy Austria
Economy - overview:
Austria, with its well-developed market economy and high standard
of living, is closely tied to other EU economies, especially
Germany's. Membership in the EU has drawn an influx of foreign
investors attracted by Austria's access to the single European
market and proximity to EU aspirant economies. Slow growth in
Germany and elsewhere in the world held the economy to 0.7% growth
in 2001, 1.4% in 2002, and again less than 1% in 2003. However,
recent data signal that the recovery has started. The government
estimates economic growth in 2004 of 1.7-2.1% and of 2.5% in 2005.
The government is planning a EURO 500 billion income tax cut in
2004, though some economists doubt it will have stimulative effects
in 2004, because it will be offset by higher health insurance
contributions and higher taxes on energy. For 2005, Austria plans a
tax cut of EURO 2.5 billion and harmonization of the various pension
schemes. To meet increased competition from both EU and Central
European countries, particularly the new EU members, Austria will
need to emphasize knowledge-based sectors of the economy, continue
to deregulate the service sector, and lower its tax burden. A key
issue is the encouragement of much greater participation in the
labor market by its aging population.
GDP:
purchasing power parity - $245.3 billion (2003 est.)
GDP - real growth rate:
0.7% (2003 est.)
GDP - per capita:
purchasing power parity - $30,000 (2003 est.)
GDP - composition by sector: agriculture: 3.5% industry: 25.7% services: 70.9% (2003 est.)
Investment (gross fixed):
22.5% of GDP (2003)
Population below poverty line:
3.9% (1999)
Household income or consumption by percentage share: lowest 10%: 2.5% highest 10%: 22.5% (1995)