Economic trends
After undergoing the worst recession in its history, in 2010 Austria's economy was been slowly recovering and a stronger recovery followed in 2011 (2.9%). However growth should again slow down markedly in 2012, due to the crisis in the eurozone.
The government has set a goal of reducing the fiscal deficit below 3% of GDP by 2013 and more in subsequent years, in order to bring public debt under 60% of GDP within the next decade. Priority is also given to reducing unemployment, and to support in the research and development and education sectors. In view of the possibility of the eurozone crisis worsening, banks have been asked to increase their capital ratio. Structural reforms are also needed to address the challenges posed by the retirement system, the aging population, inefficient administration and a weak education system.
In terms of per capita income, Austria ranks fourth in the European Union. In spite of the eurozone crisis, employment rate grew in 2011 and the rate of unemployment should remain below 4.5%, one of the lowest in Europe. Although it has decreased, Austria's unemployment rate has not returned to the its 2009 level, before the global financial crisis.
Main branches of industry
Dominating the economy, the tertiary sector contributes around 70% of the GDP and employs two-thirds of the country's active population. Tourism is well developed: nearly 17 million tourists visit Austria annually.
The agricultural sector contributes about 2% of the GDP and employs nearly 6% of the active population. Cattle farming and viticulture are the country's main agricultural activities. Organic agriculture is developing rapidly. It currently represents 10% of the agricultural production. Austria benefits from significant European Union subsidies as provided by the Common Agricultural Policy.
The main industrial sectors are the metalworking industry, electrochemistry and engineering, even though most of the companies in these sectors are relatively small on the international scale. The country has little mineral resources such as iron, lead and copper.
International trade
The Austrian economy is heavily dependant on foreign trade which accounts for more than 100% of its GDP. Trade with European Union countries accounts for about 70% of the total trade. Due to the Austrian imports growing more rapidly than the exports, the Austrian trade deficit has deepened in 2011. This tendency should continue in 2012 due to the ongoing eurozone crisis.
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Last updates: May 2012
