Volume 1 - Issue 6 - EU Chambers of Commerce of India

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The Republic of Austria (Republik Oesterreich) is located in
southern Central Europe. With an area of 84,000 sq. km and 8.4
million population, it encompasses the Eastern Alps (2/3rd of its
area) and the Danube Region. Austria has been at crossroads of
travel routes between the major European economic and cultural
regions. Austria is land locked, sharing borders with 8 countries:
Germany, Czech Republic, Slovakia, Hungary, Slovenia, Italy,
Switzerland & Liechtenstein. Austria is a federal state comprising 9
provinces: Burgenland, Carinthia, Lower Austria, Salzburg, Styria,
Tyrol, Upper Austria, Vienna and Vorarlberg.
Climate
COUNTRY FOCUS - AUSTRIA COUNTRY FOCUS
FACT SHEET
Area : 83,858 sq.km. Capital : Vienna
Population : 8.375 million Currency : Euro
Official Language : German Geographic Coordinates : 47.20 N, 13.20 E
Head of State : President Dr. Heinz Fischer GDP-composition Sector-wise - Agriculture 1.9%;
GDP per capita - € 33,850 (2010) Industry28.7%; Services : 69.4% (2010)
The average temperature in summer is around 20°C with maximum
temperatures of around 35°C. In winter temperatures can be as low
as –15°C, although the average is around -4°C. There can be
especially heavy snowfall in the mountain regions. Highest rainfall is
in May and June.
Bodies of Water
The most important waterway is the Danube. The largest lake is the
Neusiedel Lake in Burgenland - around 77% of its total area of 315
km² is in Austria, the rest is part of Hungary. The Attersee Lake has
an area of 46 km², the Traunsee is 24 km². Also a part of Lake
Constance (Bodensee), 24 km², lies in Austria (from a total area of
536 km²).
Raw Materials
The raw materials mined in Austria are Iron ore, Lignite (brown coal),
Crude oil and natural gas, Magnesite, Silica sand Gypsum, Lead
and zinc ore, Graphite and kaoline.
Salt mining also plays a significant role and another key raw material
from Austria is wood.
Prater with Giant Ferries Wheel
National Economics
In the context of economic development in Europe, Austria can
boast above average growth and one of the highest employment
rates. Austria is among the most stable countries in the world.
Inflation rates are low, the increase in national debt has been
succesfully reduced and there the target of a balanced budget is
within reach. An array of measures have been implemented to
stimulate growth through liberalisation and privatisation and to
secure the future through social system reforms.
Austria has been a member of the European Union since 1995 and
is fully integrated into the common market. GDP (Gross Domestic
Product) per capita is at EUR 34,120 (2010 nominal), putting Austria
under the top ten within the EU as well as world-wide.
For 2011 a 3.2% increase of Austria's GDP is predicted.
Foreign Trade
2010 was a prosperous year for Austria's foreign trade after the
massive fall in 2009. Both imports and exports grew by
approximately 16% in comparison to the previous year but have not
recovered to their 2008 highs. The trade deficit has, however,
increased to €4.26 billion.
In 2010, exports from Austria increased by 16.5% to €109.19 billion.
Austria's main destinations for Exports are Germany, accounting for
32% of total exports from Austria, Italy (8%), Switzerland (5%) and
the USA (5%). Europe is the destination of 82% of Austria's total
exports. Asia accounts for another 9% (30% of which goes to China,
10.5% to Japan and 6.7% to India) and America for 7% of the total
(65% of which goes to the USA).
Schönbrunn Palace (Vienna),
Austria
Imports to Austria increased by 16.3% to €113.45 billion in 2010.
Main origins of imports are Germany, which is the source of 44.82%
of Austria's total imports, Italy (7%), Switzerland (5%) and China
(5%). 83% of Austria's imports come from Europe, 11% from Asia
(45% of which is from China, 14% from Japan and 7% from
Kazakhstan) and 4.3% from America (68% of which comes from the
USA).
Export Economy
As Austria is an industrial country with a small domestic market, the
export economy is particularly important.
2010 saw moderate growth for Austrian exports with a rise of 16,7%.
The value was therefore EUR 109.4 billion and the export quota
(product and service exports as a percentage of GDP) was at
55,3%. In comparison to the previous year imports also increased
and are at EUR 113.7 billion. The most important product groups for
export are Mechanical engineering and terotechnology, Vehicles
and automotive parts, Medical and pharmaceutical products, Iron,
Steel and metal goods, Paper and cardboard.
Austrian exports are also heavily influenced by service exports, with
tourism taking first place in this sector.
Industrial Sectors
The most important industrial sectors in Austria are Food and
Drinkindustry, Mechanical and Steel Engineering, Chemical and
Automotive industry, Electrics and Electronics industry and Wood,
Pulp and Paper industry.
The majority of Austrian goods exports come from these industrial
sectors.
Trade Partners
The most important trade partners are Germany, Italy, Switzerland,
USA and France.
Austria's proximity to Central and Eastern European states is a key
factor in the increasing significance of trade and the economic
networking with these countries. The share of Austrian exports in
these regions reached 17,8% in 2010.
Key regional sectors
Hohensalzburg Fortress Salzburg
The key economic sectors for each region:
Upper Austria : Iron, steel, chemical and mechanical
engineering.
Salzburg : Electrics, wood and paper, national
services in wholesale and transport.
Vorarlberg : Textilies, clothing.
Carinthia : Wood, pulp and paper industry.
Styria : Automobiles, iron and steel, manufacturing.
Tyrol : Glass, Wood.
Vienna : Financial Services.
Science and Technology
Innovation is a priority for Austria and their expenditure on research
and experimental development (R&D) in 2011 increased by 5.0%
over 2010 to reach 8.29 billion Euros. This is 2.79% of Austria’s GDP.
The private sector finances the largest part (44.6% or 3.70 billion
Euro) while the public sector will contribute 38.7% or approx 3.21
billion Euro. Of this, the federal government will finance 2.73 billion
Euro, the regional governments around 394 million Euro and local
governments, chambers and social security institutions will
contribute about 87 million Euro. 16.2% will be financed from
abroad and 0.4% (approximately 35 million Euro) comes from the
private non-profit sector. The funds from abroad (ca. 1.34 billion
Euro) originate mostly from international enterprise groups whose
domestic affiliates in Austria perform R&D. This also includes
backflows from the EU R&D Framework.
INTERNATIONAL RELATIONS
Austria is not only a member of many international
organisations, it also hosts their headquarters. This underlines
the importance of Austria and Vienna with regard to
international relations.
Membership of International Organisations
Austria has been a member of the European Union (EU) since
1.1.1995. In addition Austria is also a member of the following
organisations: UN (United Nations), World Bank Group, OECD
(Organisation for Economic Co-operation and Development),
OSCE (Organisation for Security and Co-operation in Europe),
WTO (World Trade Organization) / GATT (General Agreement on
Tariffs and Trade), IMF (International Monetary Funds), WHO (World
Health Organisation)
Vienna Opera House
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