Austria

The Republic of Austria (German: Republik Österreich) is a landlocked country in central Europe. It borders Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. The capital is the city of Vienna.

Economy

Austria has a well-developed social market economy and a high standard of living. Until the 1980s many of Austria's largest industry firms were nationalised, however in recent years privatisation 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.

Related Topics:
Social market economy - Standard of living

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Germany has historically been the main trading partner of Austria, making it vulnerable to rapid changes in the German economy. Slow growth in Germany and elsewhere in the world affected Austria, slowing its growth to 1.2% in 2001. But since Austria became a member state of the European Union it has gained closer ties to other European Union economies, reducing its economic dependence on Germany. In addition, 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 aspiring economies. Therefore estimates of growth in 2005 (up to 2%) are much more favourable than in the crippling German economy.

Related Topics:
Germany - German economy - 2001 - European Union - 2005

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Agriculture: Austrian farms, like those of other west European mountainous countries, are small and fragmented, and production is relatively expensive.

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Industry: Although some industries, such as several iron and steel works and chemical plants, are large industrial enterprises employing thousands of people, most industrial and commercial enterprises in Austria are relatively small on an international scale.

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Services: Like in other western countries, the biggest contributor to Austria's GDP is its service sector. Most notably is tourism, especially winter tourism.

Related Topics:
Tourism - Winter

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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.

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See also: List of Austrian companies

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