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Austria is the 12th richest country in the world in terms of GDP (Gross domestic product) per capita, has a well-developed social market economy, and a high standard of living. Until the 1980s, many of Austria's largest industry firms were nationalized; in recent years, however, privatization has reduced state holdings to a level comparable to other European economies. Labour movements are particularly strong in Austria and have large influence on labour politics. Next to a highly developed industry, international tourism is the most important part of the national economy.

Germany has historically been the main trading partner of Austria, making it vulnerable to rapid changes in the German economy. Since Austria became a member state of the European Union, it has gained closer ties to other EU economies, reducing its economic dependence on Germany. In addition, membership of the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to the aspiring economies of the European Union. Growth in GDP reached 3.3% in 2006.

Austria indicated on 16 November 2010 that it would withhold the December installment of its contribution to the EU bailout of Greece, citing the material worsening of the Greek debt situation and the apparent inability of Greece to collect the level of tax receipts it had previously promised.

The Eurozone crisis dented the economy of Austria in other ways as well. It caused, for example, the Hypo Group Alpe Adria to be purchased in December 2009 by the government for 1 euro owing to credit difficulties, thus wiping out the euro 1.63bn of BayernLB. As of February 2014, the HGAA situation was unresolved,causing Chancellor Werner Faymann to warn that its failure would be comparable to the 1931 Creditanstalt event.

Since the fall of communism, Austrian companies have been quite active players and consolidators in Eastern Europe. Between 1995 and 2010, 4,868 mergers and acquisitions with a total known value of 163 bil. EUR with the involvement of Austrian firms have been announced. The largest transactions with involvement of Austrian companies have been: the acquisition of Bank Austria by Bayerische Hypo- und Vereinsbank for 7.8 billion EUR in 2000, the acquisition of Porsche Holding Salzburg by Volkswagen Group for 3.6 billion EUR in 2009,and the acquisition of Banca Comercială Română by Erste Group for 3.7 bil. EUR in 2005.

Tourism accounts for almost 9% of the Austrian gross domestic product. In 2007, Austria ranked 9th worldwide in international tourism receipts, with 18.9 billion US$. In international tourist arrivals, Austria ranked 12th with 20.8 million tourists.

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