AUSTRIA: Useful Info

The Austro-Hungarian Empire was a key player in the history of central Europe. While it is no longer wields as much political power, it still holds considerable influence because of its strategic location in the heart of the continent, along the Danube trade route. Its role in international affairs is reflected in the number of international organizations located in its capital, including the OSCE Secretariat, the International Atomic Energy Agency and the Organisation of Petroleum Exporting Countries.

The country has experienced very few political upheavals since the end of World War II, creating a stable environment ideal for business and investment. There are three major parties: the conservative People’s Party (OVP), the Socialist party (SPO) and the populist Freedom Party (FPO). For 20 years, the SPO held the majority. Under its leadership, the government was once heavily involved in key industries, but the 1980’s saw a distinct shift to market-oriented economic policies—a big plus for foreign investors and entrepreneurial ventures.

In terms of contribution to culture, Austria has few equals, having produced some of the world’s most brilliant minds: Mozart, Schubert, Sigmund Freud, Ludwig Wittgenstein, and Gustav Klimt.

Quick Facts

Population: 8.1 million (Source: UN, 2005)
Capital: Vienna
Area: 83,871 sq km (32,383 sq miles)
Major language: German
Monetary unit: 1 Euro = 100 cents
Main exports: machinery, metals, paper, textiles, food, livestock
GNI per capita: US $32,300 (Source: World Bank, 2005)

Economic Background

Austria’s economy has seen sustained growth. Though figures have yet to reach the 5% average achieved in the 50’s-60’s, and the 3% average in the 70’s-80’s, it has recovered from the all-time low of 0.7% in 2003 to a respectable 2%. Economists project a growth of 2.2% to 2.3% in 2005, and 2.2% to 2.4% in 2006.

Credit goes to the Austrian government, which has taken great steps to develop the country’s social market economy. After decades of state ownership of key industries, it began privatization efforts in the 1990’s.

Since January 1995, Austria has been a member of the EU, a move that has attracted foreign investors and expanded its trade partnerships, particularly with EU members from central and Eastern Europe and the Balkan countries, where it plans to relocate its labor-intensive production activities. Its strategic location, strong ties and experience in these emerging markets make it an excellent partner for those seeking to penetrate those areas.

Austria has very well-developed industry, banking, transportation, services, and commercial facilities, with some iron, steel and chemical plants employing thousands of people. The advanced level of technology, coupled by Austria’s highly skilled workforce, are a key advantage for businesses that wish to operate in the area. The country also presents a cost-advantage over Germany.

Austria’s main source of trade activity is the import and export of machinery. Most of its outward trade is focused in Central and Eastern Europe, where it holds a 9% share of the total investments and joint ventures. However, there are many opportunities to export to Austria. Because of the country’s size and limited resources. In 2004, UK exports to Austria totaled £2,335.9 million. As a whole, Britain’s prices are considered competitive, despite the high level of sterling.

Business Issues
Business Plan
Countries
Finance
Marketing
Start up
Strategies
Taxation
Technology


Back