The Austrian economy is deemed as one of the most stable in Europe strong industry and service sector. In 2023 Austria recorded development of 1,6 % (IMF estimation) and is expected to stay stable within the coming years.
Austria has a population of 8.8 million population which 4.4 million people belong to labour force, of whom most are highly educated and skilled. The country has a low percentage of unemployment when compared with other countries in the eurozone and the EU, I low single digits. In 2023, unemployment rate grew slightly to five.1% but it is likely to remain stable to 5% in 2023 and 2023 (IMF estimates). At the same time, there is a labour shortage which could limit economic growth.
National debt has been reduced since 2023 for an estimated 70.7% of GDP in 2023 (IMF) and also the government intends to reduce it to 67.7% of GDP in 2023 and also to 65.1% in 2023, reaching the Maastricht criterion of 60% within a few years. The National Bank of Austria expected public deficit to achieve 0.0% in 2023 because of the economic recovery within the Euro zone and the strengthening of trade relations with eastern Countries in europe.
With average inflation rate of just one.8% because the introduction from the euro, Austria has successfully maintained price stability in line with Eurosystem’s definition (1.5% in 2023 and an estimated 1.9% for 2023 and 2023, according to IMF).
Austria is one of the 10 member states that contribute more towards the EU budget compared to what they receive (0.85% of GDP versus 0.51%, European Commission data).
Austria is characterized like a free market economy with a strong social focus on weaker people as well on as its commitment to economic and social partnership, which traditionally plays a strong and reconciliatory role in wage and value policies.
Austrian industry covers every branch of producing, from basic goods to the labor-intensive production of highly processed products. The most crucial industries are food and luxury commodities, mechanical engineering and steel construction, chemicals, and vehicle manufacturing. The making of plants and systems (encompassing the look, delivery, and assembly of turn-key production facilities, such as the required know-how and operational expertise) is creating an increasingly important share.
Over yesteryear 15 years, Austria has successfully implemented policies for that economic specialization of each region (Lander): Upper Austria (iron, steel, chemical and mechanical engineering), Salzburg (electrics, wood and paper), Vorarlberg (textile, clothing), Carinthia (wood, pulp and paper industry), Styria (automobiles, manufacturing) and Vienna (financial services).
The industrial sector is composed of SMEs and is strongly attached to the Central European markets. It accounts for 25.4% from the GDP and employs 24.4% of the active population.
Apart from strong network of export-focused SMEs, the nation relays on excellent academic standards and significant spending for research and development which bring about innovation and business diversification in green and digital economy.
The agricultural sector employs 3.8% from the active population and represents 1.1% of GDP (World Bank data). However, combined with food and drink industry, it represents about 12% from the GDP. There's strong trend in organic farming with overall share of 22% which gives Austria a leading position among the EU Member States. Austria advantages of significant subsidies in the Eu provided by the most popular Agricultural Policy. Consequently, agricultural exports are continuously increasing.
Austria is full of resources among that are iron ore, non-ferrous metals, important minerals and earths. Austria features its own resources of petroleum and natural gas. The generation of hydroelectric power is continually being expanded, which makes Austria the best choice in neuro-scientific hydroelectric power in the Eu.
The renewable energies sector, especially hydroelectric power, is booming and it is performance has exceeded the ones from the tourism and construction sectors. By 2023, Austrian energy companies are expected to invest almost EUR 10 billion into the distribution, efficiency and upgrade of the energy sector.
Austria is world-famous for its arts and crafts, most notably fine hand-crafted items, costumized jewellery, ceramics, and glassware.
The services sector dominates the economy, contributing 62.7% of the GDP and employing 71.6% from the country’s active population. Every sixth job is supplied by tourism, with a major impact within the country's economy. According to the last available information of Statistical Office, Austria registered 46.1 million arrivals in the year 2023 (with more than 31.8 million international tourists), a new record having a development of 3%. The majority of the visitors came from Germany (37%), Netherlands (7%), Switzerland (3.6%), and United Kingdom (2.6%).
