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, creating a more competitive business environment,
further strengthening Austria's attractiveness as an investment
location, and implementing effective pension reforms; however, lower
taxes in 2005-2006 have lead to a small budget deficit in 2006. Weak
domestic consumption and slow growth in Europe have held the economy
to growth rates below 3% in 2002-05. Due to higher growth across
Europe, Austrian grew 3.3 percent in 2006. To meet increased
competition from both EU and Central European countries,
particularly the new EU members, 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):
$279.5 billion (2006 est.)
GDP (official exchange rate):
$309.3 billion (2006 est.)
GDP - real growth rate:
3.3% (2006 est.)
GDP - per capita (PPP):
$34,100 (2006 est.)
GDP - composition by sector: agriculture: 1.8% industry: 30.4% services: 67.8% (2005 est.)
Labor force: 3.52 million (2006 est.)
Labor force - by occupation: agriculture: 3% industry: 27% services: 70% (2005 est.)
Unemployment rate:
4.9% (2006 est.)
Population below poverty line:
5.9% (2004)