Economic overview Austria, in 36 editions.

Austria boasts a prosperous and stable capitalist economy with a sizable proportion of nationalized industry and extensive welfare benefits. Thanks to an excellent raw material endowment, a technically skilled labor force, and strong links with to West German industrial firms, Austria has successfully occupied specialized niches in European industry and services (tourism, banking) and produces almost enough food to feed itself with only 8% of the labor force in agriculture. Improved export prospects from German unification and the opening of Eastern Europe will also boost the economy during the next few years. Living standards are roughly comparable with the large industrial countries of Western Europe. Problems for the l990s include an aging population population, the high level of subsidies, and the struggle to keep welfare benefits within budget capabilities. Austria, which has applied for EC membership, is currently involved in EC and European Free Trade Association negotiations for a European Economic Area and will have to adapt its economy to achieve freer movement of goods, services, capital, and labor with the EC.

Austria boasts a prosperous and stable capitalist economy with a sizable
proportion of nationalized industry and extensive welfare benefits. Thanks
to an excellent raw material endowment, a technically skilled labor force,
and strong links to West German industrial firms, Austria has successfully occupied occupies specialized
niches in European industry and services (tourism, banking) and produces
almost enough food to feed itself with only 8% of the labor force in
agriculture. Improved export prospects resulting from German unification and
the opening of Eastern Europe will also boost Europe, boosted the economy during 1990 and to a
lesser extent in 1991. GDP growth slowed from 4.9% in 1990 to 3% in 1991 -
mainly due to the next few years. weaker world economy - and is expected to drop to around
2% in 1992. Inflation is forecasted at about 4%, while unemployment probably
will increase moderately through 1992 before declining in 1993. Living
standards are roughly comparable with the large industrial countries of Western
Europe. Problems for the l990s include an aging population, the high level
of subsidies, and the struggle to keep welfare benefits within budget
capabilities. Austria, which has applied for EC membership, is currently was involved in
EC and European Free Trade Association negotiations for a European Economic
Area and will have to adapt its economy to achieve freer movement interchange of
goods, services, capital, and labor with within the EC.

Austria boasts a prosperous and stable capitalist socialist market economy with a sizable
sizable proportion of nationalized industry and extensive welfare benefits. Thanks
Thanks to an excellent raw material endowment, a technically skilled labor force,
force, and strong links to German industrial firms, Austria occupies specialized
specialized niches in European industry and services (tourism, banking) and produces
produces almost enough food to feed itself with only 8% of the labor force in
in agriculture. Improved Increased export prospects sales resulting from German unification and unification,
the opening of Eastern Europe, boosted the economy during 1990 and continued to a boost Austria's economy through 1991. However, Germany's
lesser extent economic difficulties in 1991. 1992 slowed Austria's GDP growth slowed from 4.9% in 1990 to 2% from the 3% in 1991 -
mainly due to the weaker world economy - and of 1991. Austria's economy, moreover, is not expected to drop to around grow by more than
2% 1% in 1992. Inflation 1993, and inflation is forecasted at forecast to remain about 4%, while unemployment probably
4%. Unemployment will increase moderately through 1992 before declining in 1993. Living
likely remain at current levels at least until 1994. Living standards in
Austria are comparable with the large industrial countries of Western
Europe. Problems for the l990s include an aging population, the high level
of subsidies, and the struggle to keep welfare benefits within budget budgetary
capabilities. Austria, which has applied for EC membership, was involved in The continued opening of Eastern European markets, however,
EC and will increase demand for Austrian exports. Austria, a member of the European
Free Trade Association negotiations for a (EFTA), in 1992 ratified the European Economic
Area and
Treaty, which will have to adapt its economy to achieve freer interchange extend European Community rules on the free movement of
people, goods, services, capital, capital and labor services to the EFTA countries, and Austrians
plan to hold a national referendum within the EC. next two years to vote on EC
membership.

Austria boasts a prosperous and stable socialist market economy with a
sizable but falling proportion of nationalized industry and extensive
welfare benefits.
Thanks to an excellent its raw material endowment, a technically
skilled labor
force, and strong links to German industrial firms,
Austria occupies
specialized niches in European industry and services
(tourism, banking) and
produces almost enough food to feed itself with
only 8% of the labor force
in agriculture. Increased export sales
resulting from German unification,
continued to boost boosted Austria's economy through 1991. However, Germany's
economic difficulties in 1992 slowed 1991, but Austria's GDP growth slowed to 2% from the 3% in 1992 and -0.5% in 1993
of 1991. Austria's economy, moreover, is not expected due to grow by more than the weak international economy, particularly in Germany - its
1% largest trading partner. GDP growth will resume slowly in 1993, and inflation is forecast 1994, with
estimates ranging from a 0.5% to remain about 4%. a 1% increase. Unemployment will
likely remain at current levels at least until 1994. Living standards in has risen
Austria are comparable with the large industrial countries to 7% as a result of Western the slowdown and will continue to rise in 1994.
Europe. Problems for the l990s include an aging population, the high level
of
subsidies, and the struggle to keep welfare benefits within budgetary
capabilities. The Austria's government has taken measures to make the
economy more liberal and open by introducing a major tax reform,
privatizing state-owned firms, and liberalizing cross-border capital
movements. Although it will face increased competition, Austria should
benefit from the continued opening of Eastern eastern European markets, however, as
will increase demand for Austrian exports. Austria, a member of well as the European
Free Trade Association (EFTA), in 1992 ratified 1 January 1994 start of the European Economic Area
Treaty, which will extend
extends the European Community Union rules on the free movement of
people, goods, capital
capital, and goods and services to four members (including Austria) of
the EFTA countries, European Free Trade Association (EFTA). Austria has concluded
membership negotiations with the European Union and Austrians is expected to
plan join in early 1995, thus broadening European economic unity. The
government, however, plans to hold a national referendum within on the next two years to vote matter
on EC 12 June 1994; support for and opposition to membership appears
membership. about equal.

Austria boasts a prosperous and stable socialist market economy with a
sizable but falling proportion of nationalized industry and extensive with
extensive welfare benefits. Thanks to its raw material endowment, a technically
technically skilled labor force, and strong links to German industrial firms,
firms, Austria occupies specialized niches in European industry and services
services (tourism, banking) and produces almost enough food to feed
itself with
only 8% of the labor force in agriculture. Increased export sales After 11
resulting from German unification, boosted Austria's consecutive years of growth, the Austrian economy through
1991, but Austria's GDP growth slowed to 2% in 1992 and -0.5% in 1993 experienced a mild
due to the weak international economy, particularly recession in Germany - its
largest trading partner. GDP 1993, but growth will resume slowly resumed in 1994, with
estimates ranging from a 0.5% to a 1% increase. 1994. Unemployment has risen is 4.3%
to 7% as a result of the slowdown and will continue likely stay at that level as companies adjust to rise in 1994.
Problems for the l990s include an aging population, the high level of
subsidies, and the struggle to keep welfare benefits within budgetary competition of EU membership beginning 1 January 1995. To prepare for
capabilities. EU membership, Austria's government has taken measures to make open the
economy more liberal and open by introducing a major tax reform,
privatizing state-owned
firms, and liberalizing cross-border capital
movements. Although it will face increased competition, Austria should
benefit from the continued opening of eastern European markets, as
well as the 1 January 1994 start of the European Economic Area which Problems for
extends the European Union rules on 1990s include an aging population, the free movement high level of people, industrial
capital, and goods subsidies, and services to four members (including Austria) of
the European Free Trade Association (EFTA). Austria has concluded
membership negotiations with the European Union and is expected struggle to
join in early 1995, thus broadening European economic unity. The keep welfare benefits within budgetary
government, however, plans to hold a national referendum on capabilities - the matter
on 12 June 1994; support for and opposition deficit climbed to membership appears
about equal. over 4% of GDP in 1994.

Austria has a well-developed market economy
with a
sizable - but falling - proportion of nationalized industry,
an
extensive social system, safety net, and a high standard of living. Austria's
economy is closely integrated with Germany and other EU members -
Austria joined the EU on 1 January 1995. Since the early 1980s, the
Austrian economy has experienced stable growth. Following a mild
recession in 1993, Austria's economy - driven by strong exports,
investment, and private consumption - expanded 2.7% in 1994 and
about 2.4% in 1995. The slowdown in 1995 was largely due to an
appreciation of the Austrian schilling and its negative effect on
exports and tourism. EU membership has had
a positive impact on
foreign investment and has helped to lower inflation. Despite
Austria's generally favorable economic prospects, inflation. In April 1996, the government
faces passed a number of economic challenges, especially two-year austerity
budget - including cuts in social allowances, a freeze on civil
consolidation. Smaller than expected revenues servants' wages, and rising welfare new energy and capital gains taxes - designed to
payments caused bring the budget deficit to climb to 7.1% of GDP economy in 1995.
Austria also faces a growing unemployment problem. Although low by line with the Maastricht criteria for membership
in the European standards, Austria's unemployment rate Economic and Monetary Union (EMU). EMU convergence has risen gradually
during the 1990s as companies restructured to meet competition from become a top priority for Austria. Despite Austria's generally
favorable prospects, the EU single market economy faces a number of medium-term
challenges; for example, fiscal tightening is constraining expected
growth, and Eastern Europe. unemployment is expected to increase.

Austria, a member of the European Union since 1
January 1995, Austria has a well-developed market economy
with a high standard
of living. With exports of goods and services reaching over 40% As a member of the European Monetary
GDP, Union (EMU), Austria's economy is closely integrated with other EU member
member countries, especially with Germany. Austria's entry into membership in
the EU has
drawn an influx of foreign investors attracted by
Austria's access to
the single European market. Austria is well on its way to meeting all
Maastricht convergence criteria for monetary union, through Through
privatization efforts, the 1996-98 budget consolidation programs, and
and austerity measures, which were expected to bring Austria brought its total public sector
deficit down to 3% 2.5% of GDP in 1997 and public debt debt--at 66% of GDP in
1997--more or less in line with the 60%
of GDP required by the EU. EU's
Maastricht criteria. Cuts mainly affect the civil service and
Austria's generous social system, the two major causes of the
government deficit. To meet increased competition from both the EU and
Central European countries, Austria will need to emphasize
knowledge-based sectors of the economy and deregulate the service
sector, particularly telecommunications and the energy sector. energy. The strong GDP
Economic prospects are growth of 1998 is expected to brighten dwindle back to 2.3% in 1998 with GDP growth 1999, and
projected to observers caution that this projection may be 2.5%. revised downwards in
view of the Asian and Brazilian crises and Germany's lower growth
projection.

Austria has a with its well-developed market economy
with a and high standard of living. As a member of the European Monetary
Union (EMU), Austria's economy living is closely integrated with tied to other EU
member countries, economies, especially with Germany. Austria's membership Germany's. Membership in
the EU has drawn an influx of foreign investors attracted by
Austria's access to the single European market. Through
privatization efforts, the 1996-98 budget consolidation programs,
and austerity measures, Austria has brought its total public sector
deficit down to 2.5% 2.1% of GDP in 1997 1999 and public debt--at 66% debt - at 63.1% of GDP in
1997--more 1998 - more or less in line with the 60% of GDP required by the EU's
EMU's Maastricht criteria. Cuts mainly affect have affected the civil service and
Austria's generous social benefit system, the two major causes of the
government government's deficit. To meet increased competition from both EU and
Central European countries, Austria will need to emphasize
knowledge-based sectors of the economy and deregulate the service
sector, particularly telecommunications and energy. The strong GDP
growth of 1998 is expected to dwindle back sector. Growth, which slowed to 2.3% 2.0% in 1999, and
observers caution that this projection may be revised downwards probably will rebound to 2.8% in
view of the Asian and Brazilian crises both 2000 and Germany's lower growth
projection. 2001.

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. Through privatization efforts, the 1996-98 budget consolidation programs, market and austerity measures, proximity to EU aspirant economies. In 2000, Austria has brought its total public sector deficit down moved to 2.1% of GDP in 1999 further cut government spending and public debt - at 63.1% of GDP in 1998 - more or less raise taxes to meet EMU deficit targets after facing unexpected difficulties in line with the 60% of GDP required by the EMU's Maastricht criteria. Cuts mainly have affected the civil service and Austria's generous social benefit system, the two major causes of reducing the government's public deficit. To meet increased competition from both EU and Central European countries, Austria will need to emphasize knowledge-based sectors of the economy and continue to deregulate the service sector. Growth, which slowed to 2.0% in 1999, probably will rebound Growth is expected to 2.8% remain at about 3% in both 2000 and 2001.

Austria Austria, with its well-developed market economy and high standard of living 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. In 2000, Austria moved to further cut government spending Slowing growth in Germany and raise taxes to meet EMU deficit targets after facing unexpected difficulties elsewhere in reducing the public deficit. world held the economy to only 1.2% growth in 2001 and 0.6% in 2002. To meet increased competition from both EU and Central European countries, Austria will need to emphasize knowledge-based sectors of the economy and economy, continue to deregulate the service sector. Growth is expected to remain at about 3% in 2001. sector, and lower its tax burden.

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. Slowing growth in Germany and elsewhere in the world held the economy to only 1.2% growth in 2001 and 2001, 0.6% in 2002. 2002, and 0.8% in 2003.. To meet increased competition from both EU and Central European countries, 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 ageing population.

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. Slowing Slow growth in Germany and elsewhere in the world held the economy to only 1.2% 0.7% growth in 2001, 0.6% 1.4% in 2002, and 0.8% again less than 1% in 2003.. 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 ageing aging population.

Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. The economy features up-to-date industrial and agricultural sectors. Timber is a key industry, 47% of the land area being forested. 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 aspirant economies. Slow growth in Germany and elsewhere in the world Europe has 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 0.8% in 2004 of 1.7-2.1% 2003, 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 1.9% 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. 2004. 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 encourage much greater participation in the labor market by its aging population. The aging phenomenon, together with already high health and pension costs, poses fundamental problems in tax and welfare policies.

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 up-to-date a large service sector, a sound industrial sector, and agricultural sectors. Timber is a key industry, 47% of the land area being forested. 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. Slow The current 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, pursuing a balanced budget, and implementing effective pension reforms. Weak domestic consumption and slow growth in Europe has have held the economy to 0.7% growth in 2001, 1.4% rates of 0.4% in 2002, 0.8% 1.4% in 2003, 2.4% in 2004, and 1.9% 1.8% in 2004. 2005. To meet increased competition from both EU and Central European countries, particularly the new EU members, Austria will need to emphasize continue restructuring, emphasizing knowledge-based sectors of the economy, continue to deregulate the service sector, and encourage much encouraging greater participation in the labor market flexibility and greater labor participation by its aging population. The aging phenomenon, together with already high health and pension costs, poses fundamental problems in tax and welfare policies.

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 current outgoing government has successfully pursued a comprehensive economic reform program, aimed at streamlining government, government and creating a more competitive business environment, further strengthening Austria's attractiveness as an investment location, pursuing a balanced budget, and implementing location. It has implemented effective pension reforms. reforms; however, lower taxes in 2005-06 led to a small budget deficit in 2006. Weak domestic consumption and slow growth in Europe have held the economy to growth rates of 0.4% in 2002, 1.4% in 2003, 2.4% below 3% in 2004, and 1.8% 2002-05. Due to higher growth across Europe, Austria grew 3.3 percent in 2005. 2006. To meet increased competition - especially from both new EU members and Central European countries, particularly the new EU members, 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.

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. Weak domestic consumption 2006 and slow 2007. Boosted by strong exports, growth nevertheless reached 3.3% in Europe held both 2006 and 2007, although the economy to growth rates below 3% may slow in 2002-05. Due to higher growth across Europe, Austria grew 3.3 percent 2008 because of the strong euro, high oil prices, and problems in 2006. 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.

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 Its 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 Following several years of solid foreign investors attracted by Austria's access to the single European market demand for Austrian exports and proximity to record employment growth, the new EU economies. The outgoing government has successfully pursued a comprehensive global 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 downturn in 2005-06 2008 led to a small recession that is likely to persist through 2009. The government's stabilization measures could increase the budget deficit to about 2.8% of GDP in 2006 2009 and 2007. Boosted by strong exports, growth nevertheless reached 3.3% above 3% in both 2006 and 2007, although the 2010, from about 0.6% in 2008. The Austrian economy may slow has benefited greatly in 2008 because of the past from strong euro, high oil prices, and problems commercial relations, especially in the banking and insurance sectors, with central, eastern, and southeastern Europe, but these sectors have been vulnerable to recent international financial markets. To meet increased competition - especially from new EU members instabilities, and Central European countries - some of Austria's largest banks have required government support. Even after the global economic outlook improves, Austria will need to continue restructuring, emphasizing knowledge-based sectors of the economy, and encouraging greater labor flexibility and greater labor participation by to offset its aging population. population and exceedingly low fertility rate.

Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the international financial crisis and global economic downturn in 2008 led to a recession that is likely to persist through persisted until the third quarter of 2009. The government's Austrian GDP contracted 3.8% in 2009 but saw positive growth of about 2% in 2010. Unemployment has not risen as steeply in Austria as elsewhere in Europe, partly because its government has subsidized reduced working hour schemes to allow companies to retain employees. Such stabilization measures could increase measures, stimulus initiatives, and the government's income tax reforms pushed the budget deficit to about 2.8% 3.5% of GDP in 2009 and above 3% about 5% in 2010, from only about 0.6% 1.3% in 2008. The Austrian economy has benefited greatly in the past from strong commercial relations, especially in the banking and insurance sectors, with central, eastern, and southeastern Europe, but these sectors have been vulnerable to recent international financial instabilities, and crisis caused difficulties for some of Austria's largest banks have required whose extensive operations in central, eastern, and southeastern Europe faced large losses. The government support. provided bank support - including in some instances, nationalization - to prevent insolvency and possible regional contagion. In the medium-term all large Austrian banks will need additional capital. Even after the global economic outlook improves, Austria will need to continue restructuring, emphasizing knowledge-based sectors of the economy, and encouraging greater labor flexibility and greater labor participation to offset its growing unemployment and Austria's aging population and exceedingly low fertility rate.

Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the international financial crisis and global economic downturn in 2008 led to a recession that persisted until the third quarter of 2009. sharp but brief recession. Austrian GDP contracted 3.8% 3.9% in 2009 but saw positive growth of about 2% in 2010. Unemployment has not risen as steeply in Austria as elsewhere in Europe, partly because its government has subsidized reduced working hour schemes to allow companies to retain employees. Such stabilization Stabilization measures, stimulus initiatives, spending, and the government's an income tax reforms reform pushed the budget deficit to 3.5% of GDP in 2009 and about 5% 4.7% in 2010, from only about 1.3% in 2008. The international financial crisis caused difficulties for some of Austria's largest banks whose extensive operations in central, eastern, and southeastern Europe faced large losses. The government provided bank support - including in some instances, nationalization - to prevent insolvency and possible regional contagion. In the medium-term all large Austrian banks will need additional capital. Even after the global economic outlook improves, Austria will need to continue restructuring, emphasizing emphasize knowledge-based sectors of the economy, and encouraging encourage greater labor flexibility and greater labor participation to offset growing unemployment and Austria's aging population and exceedingly low fertility rate.

Austria, with its well-developed market economy economy, skilled labor force, and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the international financial crisis of 2008 and subsequent global economic downturn in 2008 led to a sharp but brief recession. Austrian GDP contracted 3.9% 3.8% in 2009 but saw positive growth of about 2% in 2010. 2010 and 2.7% in 2011. Growth fell below 1% in 2012. Unemployment has did not risen rise as steeply in Austria as elsewhere in Europe, partly because its the government has subsidized reduced working hour schemes to allow companies to retain employees. Stabilization measures, stimulus spending, and an income tax reform pushed the budget deficit to 3.5% of GDP 4.5% in 2009 2010 and 4.7% 2.6% in 2010, 2011, from only about 1.3% 0.9% in 2008. The international financial crisis of 2008 caused difficulties for Austria's largest banks whose extensive operations in central, eastern, and southeastern Europe faced large losses. The government provided bank support - including in some instances, nationalization - to prevent insolvency support aggregate demand and possible contagion. In stabilize the medium-term all large banking system. Austria's fiscal position compares favorably with other euro-zone countries, but it faces considerable external risks, such as Austrian banks will need additional capital. Even after the global economic outlook improves, Austria will need banks' continued high exposure to continue restructuring, emphasize knowledge-based sectors of the economy, central and encourage greater labor flexibility eastern Europe as well as political and labor participation economic uncertainties caused by the European sovereign debt crisis. In 2011 the government attempted to offset growing unemployment and Austria's aging population pass a constitutional amendment limiting public debt to 60% of GDP by 2020, but it was unable to obtain sufficient support in parliament and low fertility rate. instead passed the measure as a simple law. In March 2012, the Austrian parliament approved an austerity budget that will bring public finances into balance by 2016. In 2012, the budget deficit rose to 2.9% of GDP.

Austria, with its well-developed market economy, skilled labor force, and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the international financial crisis of 2008 and subsequent global economic downturn led to a sharp but brief recession. Austrian GDP contracted 3.8% in 2009 but saw positive growth of about 2% in 2010 and 2.7% in 2011. Growth fell below 1% to 0.6% in 2012. Unemployment did not rise as steeply in Austria as elsewhere in Europe, partly because the government subsidized reduced working hour schemes to allow companies to retain employees. The 2012 unemployment rate of 4.3% was the lowest within the EU. Stabilization measures, stimulus spending, and an income tax reform pushed the budget deficit to 4.5% in 2010 and 2.6% in 2011, from only about 0.9% in 2008. The international financial crisis of 2008 caused difficulties for Austria's largest banks whose extensive operations in central, eastern, and southeastern Europe faced large losses. The government provided bank support - including in some instances, nationalization - to support aggregate demand and stabilize the banking system. Austria's fiscal position compares favorably with other euro-zone countries, but it faces considerable external risks, such as Austrian banks' continued high exposure to central Central and eastern Eastern Europe as well as political and economic uncertainties caused by the European sovereign debt crisis. In 2011 the government attempted to pass a constitutional amendment limiting public debt to 60% of GDP by 2020, but it was unable to obtain sufficient support in parliament and instead passed the measure as a simple law. In March 2012, the Austrian parliament approved an austerity budget package consisting of a mix of expenditure cuts and new revenues that will bring public finances into balance by 2016. In 2012, the budget deficit rose to 2.9% 3.1% of GDP.

Austria, with its well-developed market economy, skilled labor force, and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a relatively sound industrial sector, and a small, but highly developed agricultural sector.
Economic growth has been relatively weak in recent years, approaching 0.9% in 2015. 2015, but rising to 1.4% in 2016. Austria's 5.8% unemployment rate, while low by European standards, is at its highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market. Without extensive vocational training programs and generous early retirement, the unemployment rate would be even higher.
Although Austria's fiscal position compares favorably with other euro-zone countries, it faces several external risks, such as unexpectedly weak world economic growth threatening the export market, Austrian banks' continued exposure to Central and Eastern Europe, repercussions from the Hypo Alpe Adria bank collapse, political and economic uncertainties caused by the European sovereign debt crisis, the current refugee crisis, and continued unrest in Russia/Ukraine. Early signs point towards a slight improvement in 2016, driven by low interest rates on government debt. Currently, the The budget deficit stands stood at 2.7% 1.4% of GDP in 2016 and public debt has reached a post-war high of 84.2% 86.2% of the GDP. GDP in 2015.

Austria, with its Austria is a well-developed market economy, economy with skilled labor force, force and high standard of living, living. It is closely tied to other EU economies, especially Germany's. Germany's, but also the US’, its third-largest trade partner. Its economy features a large service sector, a relatively sound industrial sector, and a small, but highly developed agricultural sector.
Economic Austrian economic growth has been relatively weak strengthen in recent years, approaching 0.9% 2017, with a 2.9% increase in 2015, but rising to 1.4% GDP. Austrian exports, accounting for around 60% of the GDP, were up 8.2% in 2016. Austria's 5.8% 2017. Austria’s unemployment rate, while rate fell by 0.3% to 5.5%, which is low by European standards, is but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market. Without extensive vocational training programs and generous early retirement, the unemployment rate would be even higher.
Although Austria's fiscal position compares favorably with other euro-zone countries, countries. The budget deficit stood at a low 0.7% of GDP in 2017 and public debt declined again to 78.4% of GDP in 2017, after reaching a post-war high 84.6% in 2015. The Austrian government has announced it faces several plans to balance the fiscal budget in 2019. Several external risks, such as unexpectedly weak world economic growth threatening the export market, Austrian banks' continued exposure to Central and Eastern Europe, repercussions from the Hypo Alpe Adria bank collapse, political and economic uncertainties caused by the European sovereign debt crisis, the current refugee crisis, and continued unrest in Russia/Ukraine. The budget deficit stood at 1.4% of GDP Russia/Ukraine, eased in 2016 and public debt reached 2017, but are still a post-war high of 86.2% of factor for the GDP Austrian economy. Exposure to the Russian banking sector and a deep energy relationship with Russia present additional risks. Austria elected a new pro-business government in 2015. October 2017 that campaigned on promises to reduce bureaucracy, improve public sector efficiency, reduce labor market protections, and provide positive investment incentives.

Austria is a well-developed market economy with skilled labor force and high standard of living. It is closely tied to other EU economies, especially Germany's, but also the US’, its third-largest trade partner. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.
Austrian economic growth strengthen in 2017, with a 2.9% increase in GDP. Austrian exports, accounting for around 60% of the GDP, were up 8.2% in 2017. Austria’s unemployment rate fell by 0.3% to 5.5%, which is low by European standards, but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market.
Austria's fiscal position compares favorably with other euro-zone countries. The budget deficit stood at a low 0.7% of GDP in 2017 and public debt declined again to 78.4% of GDP in 2017, after reaching a post-war high 84.6% in 2015. The Austrian government has announced it plans to balance the fiscal budget in 2019. Several external risks, such as Austrian banks' exposure to Central and Eastern Europe, the refugee crisis, and continued unrest in Russia/Ukraine, eased in 2017, but are still a factor for the Austrian economy. Exposure to the Russian banking sector and a deep energy relationship with Russia present additional risks.
Austria elected a new pro-business government in October 2017 that campaigned on promises to reduce bureaucracy, improve public sector efficiency, reduce labor market protections, and provide positive investment incentives.

Austria is a well-developed market economy with skilled labor force and high standard of living. It is closely tied to other EU economies, especially Germany's, but also the US’, its third-largest trade partner. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.
Austrian economic growth strengthen strengthened in 2017, with a 2.9% increase in GDP. Austrian exports, accounting for around 60% of the GDP, were up 8.2% in 2017. Austria’s unemployment rate fell by 0.3% to 5.5%, which is low by European standards, but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market.
Austria's fiscal position compares favorably with other euro-zone countries. The budget deficit stood at a low 0.7% of GDP in 2017 and public debt declined again to 78.4% of GDP in 2017, after reaching a post-war high 84.6% in 2015. The Austrian government has announced it plans to balance the fiscal budget in 2019. Several external risks, such as Austrian banks' exposure to Central and Eastern Europe, the refugee crisis, and continued unrest in Russia/Ukraine, eased in 2017, but are still a factor for the Austrian economy. Exposure to the Russian banking sector and a deep energy relationship with Russia present additional risks.
Austria elected a new pro-business government in October 2017 that campaigned on promises to reduce bureaucracy, improve public sector efficiency, reduce labor market protections, and provide positive investment incentives.