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EconomicPoliticalStructural

Austria – Quick View
ECR score84.01 (Mar 2011)
ECR rank13 (Mar 2011)
Economic
GDP, 2010USD 377 billion
GNI per capita PPPUSD 37,960
FDI inflow, 2009USD 155.60 billion
Inflation, 20101.9%
Central bank assets, 2009USD 99,846.61 million
Unemployment rate, 20104.4%
Government deficit, 2009USD 17,432.39 million
Tax revenue, 2009USD 106,317.86 million
Political
Government typeDemocratic Republic
Recent political crisisNA
Economic freedom score, 201121st
Freedom of information score7th
Corruption perception index15th
Structural
Birth rate, 20099.1 per ‘000
Population balance0-14 years – 14.9%
Population balanceAbove 65 years – 17.6%
Life expectancy yearsMales – 77.7 years
Life expectancy yearsFemales – 83.2 years
Mortality rate 20099.3 per ‘000
Literacy rate99%
Internet access, 201074.2%

[Top] Economic Overview

Gross Domestic Product (GDP)

Austria’s GDP in the year 2010 amounted to EUR 284 billion compared to EUR 274.32 billion in 2009.

The country’s GDP at current prices increased by 3.5% in 2010 compared to the previous year. The GDP growth rate declined to 3.1% in 2009 and then increased to 3.5% in 2010.


(Source: National Statistics)

Austria GDP and GDP growth rate

(Source: National Statistics)

GDP per Capita

GDP per capita was registered at EUR 33,850 in 2010 compared to EUR 32,800 in 2009.

(Source: National Statistics)

Gross National Income (GNI)

Austria’s GNI was recorded at EUR 281.83 billion in 2010, an increase of 3.8% over the previous year. The GNI per capita at PPP was registered at USD 37,960 in 2009.

(Source: World Bank)

Austria Gross National Income

(Source: National Statistics)

Income Tax Rate

In Austria, income tax rate on an individuals are progressively charged up to 50%.

Income Tax Rate

Taxable Income (EUR)

Marginal Tax Rate (%)

Effective Tax Rate (%)

0 - 11,000

0

0

11,000 – 25,000

36.5

20.44

25,000 – 60,000

43.21

33.73

60,000 and Above

50

-

(Source: taxrates.cc)

Corporate Tax Rate

The standard corporate tax rate is 25%.


Tax Rate

Tax Contribution

Statutory tax rate (%)

Social security contributions

21.8

Corporate income tax

25

Contribution to family fund

4.5

Municipal employees tax

3

Advertising tax

5

Contribution to pension fund

1.5

Tax on insurance contracts

6

Contribution to chamber of commerce

0.4

(Source: doingbusiness.org)

Inflation Rate

The inflation rate was recorded at 3% in February 2011 as compared to 1% in February 2010. Annual inflation was recorded at 1.9% and 0.5% for the years 2010 and 2009 respectively.


Austria Inflation Rate
(Source: National Statistics)

Foreign Direct Investment Inflows

The total foreign direct investment inflows were EUR 111.7 billion in 2009 compared to EUR 106.4 billion in 2008. The foreign investment including SPEs and real estate was recorded at EUR 198.5 billion compared to EUR 193.3 billion in the previous year.

(Source: Central Bank

Portfolio Investment

Portfolio investment amounted to EUR 246.1 billion in 2009 compared to EUR 230.5 billion in 2009. The year on year growth rate was recorded at 6.8% in 2009 over the previous year.

(Source:Central Bank)

Banking Sector Assets

In 2009, bank sector assets amounted to EUR 71,614.2 million, a decrease of 14.6% compared to the previous year.

Banking Sector Assets (EUR million)

Assets

2009

Gold & gold receivables

6,898,736,647.07

Claims on non-euro area residents denominated in foreign currency

5,597,138,934.05

Claims on euro area residents denominated in foreign currency

173,386,148.88

Claims on non-euro area residents denominated in euro

1,596,334,701.39

Lending to euro area credit institutions

20,236,000,000

Other claims on euro area credit institutions

193,213.60

Securities of euro area residents

10,011,997,205.51

General government debt denominated in euro

427,397,446.51

Intra-Euro system claims

18,145,821,159.71

Items in course of settlement

105,810,483.44

Other assets

8,421,390,913.05

Total Assets

71,614,206,853.21

(Source: Central Bank)

[Top] Financial Indicators & Government Financial

Consumer Price Index (CPI)

The consumer price index in February 2011 was registered at 111.4 compared to 108.1 in 2010. Annual CPI was recorded at 109.5 and 107.5 in the years 2010 and 2009 respectively.

Austria Consumer Price Index


[Base Year: Index Base 2005=100]

(Source: National Statistics, National Statistics1)

Wholesale Price Index

The annual wholesale price index in 2010 was registered at 110.8 compared to 105.5 in 2009.

Austria Wholesale Price Index

 (Source: National Statistics)

Interest Rate on Savings Deposit

Interest on Savings Deposit, 2010 (%)

Interest Rate

Up to 1 year

1-2 year

Above 2 year

On Households

1.12

1.59

2.17

(Source: Central Bank)

Interest Rate on Time Deposit


Interest Rate, 2010 (%)

Interest Rate

Up to 1 year

1-2 year

Above 2 year

On Households

1.08

1.61

2.16

On Financial Corporations

0.86

1.59

2.4

(Source: Central Bank)

Money Supply

Money Supply M3 for January and February 2011 amounted to EUR 9,494.3 billion and EUR 9,543.3 billion respectively.

Money Supply (EUR billion), 2010

Time Period

M1

M2

M3

Jan

4,539.9

8,210.6

9,321.0

Feb

4,562.5

8,227.3

9,326.5

Mar

4,577.9

8,234.2

9,342.6

Apr

4,625.2

8,258.2

9,375.3

May

4,643.1

8,286.5

9,392.9

Jun

4,663.2

8,309.7

9,434.8

Jul

4,684.3

8,332.7

9,441.4

Aug

4,724.3

8,395.1

9,509.6

Sep

4,688.4

8,375.5

9,496.9

Oct

4,691.4

8,400.0

9,476.2

Nov

4,695.2

8,402.8

9,538.3

Dec

4,705.9

8,400.1

9,524.

(Source: National Statistics)

Public Debt


The public debt as a percentage of GDP was registered at 66.5% in 2009 compared to 62.6% in 2008.

(Source: National Statistics)

Government Expenditure
 

The total government expenditure for the year 2010 amounted to EUR 150,401 million. The government expenditure in 2010 was 53% of the GDP.

(Source: National Statistics, National Statistics)


Exchange Rate

Exchange rate of EUR per USD in 2010 was registered at 1.32 compared to 1.4 in 2009.


Austria Exchange Rate

(Source: Central Bank)

Government finances

Sovereign debt dynamics

 

Fiscal Balance

The fiscal deficit in the year 2010 was 4.6% of the GDP compared to 4.1% in 2009.

Austria Fiscal Balance

 

(Source: National Statistics)

Total Revenues

The total revenues for the year 2010 amounted to EUR 137,269 million. The revenues for the year 2010 were 48.3% of the GDP compared to 48.8% in 2009.

(Source:National Statistics, National Statistics)

Tax Revenue

The total tax revenue decreased by 5.1% in 2009 compared to previous year and was registered at EUR 76,255.44 million in 2009. The taxes on production and imports was the major contributor to the total tax revenues accounting for 53.78%, followed by current taxes on income and wealth which accounted for 46.05%. The capital taxes represented a percentage share of only 0.17% of total tax revenue.

(Source: National Statistics)

Current Account Balance

The current account balance in the year 2010 is estimated to be 2.31% of the GDP compared to 2.30 in 2009.

Austria Current Account Balance

(Source: IMF)

Balance of Payments

Austria’s Balance of Payments (EUR million)

Year

2010 Q3

2010 Q2

2010 Q1

2009

2008

2007

Trade in goods

−711

−381

−1,338

−2,328

−571

1,298

Trade in services

1,997

1,916

5,926

12,850

14,249

11,163

Income

93

−503

−127

−823

1,693

−1,617

Current transfers

−739

−552

−976

−1,722

−1,614

−1,225

Current Account

641

481

3,486

7,977

13,757

9,620

Capital Account

11

−89

551

218

−41

200

Financial Account

1,620

5,079

−2,701

−4,677

−14,965

−11,503

Errors and Omissions

−2,271

−5,471

−1,335

−3,518

1,249

1,683

(Source: Central Bank)

[Top] Labour Force and Employment Overview

Labour Force

The total labour force in 2010 was 4,284,600, an increase of only 0.06% compared to the previous year. Males and females accounted for 53.7% and 46.3% of the total labour force respectively.

(Source: National Statistics)

Labour Force Participation Rate

The labour force participation rate for age-group 15-64 years was recorded at 75.1% in 2010. The labour force participation rate was 80.9% for males and 69.3% for females.

(Source: National Statistics)

Unemployment Rate

The total unemployment rate was registered at 4.4% in 2010. The average unemployment rate for males and females was 4.6% and 4.2% respectively in the same year. The total unemployed individuals in 2010 were 188,200, a decrease of 7.9% compared to the previous year i.e. 2009.

(Source: National Statistics, National Statistics1)

 

Unemployment Rate, 2009 (%)

Age-group

Males

Females

15-24 years

10.5

9.4

25-49 years

4.4

4.1

50-64 years

3.6

2.9

(Source: National Statistics)

Employment in Agriculture

In 2009, 5.5% of the total active population was employed in agriculture, forestry and mining. Males and females accounted for 5.7% and 5.2% respectively of the total working population.

(Source: National Statistics)

Employment in Industries

The total employment in industries was 24.7% of the labour force in 2009. The total males and females employed in industries was 36.3% and 11.4% respectively.

(Source: National Statistics page: 42)

Employment in Services

In 2009, 69.8% of the total labour force was employed in the services sector. 58% of men and 83.4% of women were employed in this sector.

Austria Employment in Services

(Source: National Statistics page: 42)

Minimum Wage

The minimum wage for a 19-year old employee or apprentice is about USD 716.3 per month.

The index of agreed minimum wages was registered at 110.9 in 2010, an increase of 1.6% over the previous year. The annual average wage increased by 1.7% for blue-collared workers, 1.6% for white-collared workers and 1.1% for civil servants.

(Source: National Statistics, doingbusiness.org)

Level of Unionisation

Austrian Federation of Trade Unions includes nine trade unions and has a membership of 1.2 million.

(Source: fedee.com)

[Top] Political Stability

Government Stability

The Republic of Austria has a democratic republic form of government. The country comprises of nine provinces Carinthia, Burgenland, Lower Austria, Salzburg, Styria, Tyrol, Upper Austria, Vienna and Vorarlberg.

(Source: austria.org)

The President is the head of state and is directly elected for a term of six years. The President exercises various powers such as appointment of judges and members of administrative and constitutional court, dissolving the National Assembly, the commander-in-chief of the armed forces and has the right to dismiss criminal proceedings.

(Source: hofburg.at)

The Federal Chancellor is the head of government and is appointed by the President. The cabinet consists of the Chancellor, Vice-Chancellor and other ministers. The primary function of the cabinet is to pass bills and resolutions.

(Source: bka.gv)

The country’s parliament is bicameral and includes the National Council and the Federal Council. The National Council is comprised of 183 members, who are directly elected for a term of five years. The Federal Council or the Bundesrat is comprised of 62 members, who are indirectly elected. The term of office for the members of the Federal Council varies from five to six years as per the province they represent.

(Source: IPU)

The major political parties in the country include:

  • Social Democratic Party of Austria (SPO)
  • Austrian People's Party (OVP)
  • Freedom Party of Austria (FPO)
  • Alliance Future Austria (BZO)
  • The Greens

(Source: austria.org)

In the 2008 elections, a coalition government was formed with the Social Democratic Party and the Austrian People's Party. Currently, Heinz Fischer is the Federal President and Werner Faymann serves as the Federal Chancellor of the nation.

(Source: fco.gov.uk)

Regulatory Environment

Austria Economic Freedom Indices

(Source: heritage.org)

The Republic of Austria is ranked 21st on the 2011 Index of Economic Freedom with a score of 71.9 (out of 100).  The country’s overall score is above the world and regional average. In the European region, it ranks 10th out of 43 countries.

Corruption perception

Austria is ranked 15th on the Corruption Perceptions Index (CPI) with a score of 7.9. This indicates the relatively low level of corruption in the country. The country’s rankings improved from 2009, when it was ranked 16th on the CPI index.

(Source: transparency.org)

Freedom of Information

The country is ranked 7th on the World Press Freedom Index 2010 with a score of 0.5. The country has improved its position since 2009 when it was ranked 13th.

(Source: rsf.org)

Oesterreichischer Rundfunk is a key public broadcaster. Die Presse, Kronen Zeitung, Wiener Zeitung, Der Standard and Der Kurier are some of the important newspapers in the country.

(Source: BBC)

Judiciary System

The Federal Minister of Justice is the head of judicial administration. The judiciary is independent and consists of

  • Ordinary Courts
  • District Courts
  • Regional Court
  • Court of Appeal
  • Supreme Court

The District court is the first instance court which resolves civil-law cases. Regional courts act as a first and second instance court and resolves cases relating to legal matters. Court of appeal is the second instance court deciding on civil and penal-law cases. The Supreme Court is the final court of appeal for civil and criminal cases. It consists of the constitutional and administrative courts.

As of 2007; the nation had 141 district courts, 20 regional courts and four courts of appeal.

(Source:justiz.gv)

[Top] Demographic Overview

Total Population

The total population at the beginning of 2010 was registered at 8.38 million, an increase of 0.2% compared to the previous year. Individuals between the age-group 15-64 years constituted 67.5% of the total population, followed by the 0-14 age-group with a percentage share of 14.9%. People above the age of 65 years constituted 17.6% of the total population.

The total population as on 1st January 2011 is estimated to be 8.4 million as per data from Statistics Austria. The total population is projected to be 9 million by 2030.


(Source: National Statistics, National Statistics1, National Statistics2)

Average Age

The average age of the population was recorded at 41.5 years at the beginning of 2010.

(Source: National Statistics)

Gender Balance

Representation of gender in the country is not equal. The total male population increased by 0.25% in 2010 over the previous year and was recorded at 4.08 million. The total female population was 4.3 million in 2010, accounting for 51% of total population. The gender ratio in the country was 1,048.3 in 2009.

(Source: National Statistics, National Statistics1)

Austria Population by Gender

Mortality Rate

Infant mortality rate was recorded at 3.8 deaths per 1,000 live births in 2009. The birth rate and death rate was 9.1 per 1,000 population and 9.3 per 1,000 population respectively in the same year.

The provisional number of live births in the country was registered at 77,814 in 2010. The total number of deaths decreased by 0.3% in 2010 as compared to the previous year and was registered at 75,387.

(Source: National Statistics, National Statistics1, National Statistics2)

Average Life Expectancy

The life expectancy at birth for an individual in the country was 80.4 years in 2010. The life expectancy at birth for males and females was estimated to be 77.7 years and 83.2 years respectively in the same year.

(Source: UNDP, National Statistics)

Migration and Urbanisation

The international net migration was recorded at 20,596 individuals in 2009 compared to 34,436 in the previous year. The total immigrants and emigrants were 107,785 and 87,189 respectively.

(Source: National Statistics)

The total urban population constituted 66.9% of the total population. The urban population growth rate was 0.7% and rural population growth rate was 0.3% in the period 2005-2010.

(Source: UN)

Racial/Ethnic Environment

In Austria, there are six ethnic groups namely, Slovene, Croatian, Hungarian, Roma, Czech and Slovak.

(Source: National Statistics)

Poverty and Inequality

The poverty rate in 2008 was registered at 12.4% compared to 12% in 2007.


(Source: National Statistics)


Human Development Index


Austria is ranked 25th on the Human Development Index (HDI) with a score of 0.85 in 2010.
The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).


(Source: UNDP)

[Top] Soft Infrastructure

Literacy Rate

The adult literacy rate in Austria is estimated at 99%.

(Source: ec.europa.eu)

Education Resources

The education system comprises of four levels - kindergarten, primary school, secondary school and higher education. In 2008-09, there were 1,189,586 schoolchildren and 123,148 teachers.

Enrolment  by type of school

Type of school

2008-09

Elementary school

332,210

Lower secondary schools

241,430

Special schools

13,170

Pre-vocational year

20,648

General secondary school

204,787

Vocational schools

140,373

Intermediate technical and vocational schools

58,054

Higher technical and vocational colleges

135,750

(Source: National Statistics)

The public expenditure on education in 2009 was EUR 15,716.4 million, an increase of 1.6% compared to the previous year. Of the total education expenditure, 29.6% was provided to primary schools, lower secondary schools, special needs schools and pre-vocational schools and 20.8% was allocated to universities.

(Source: National Statistics)

Healthcare Resources

The major causes of death include cardiovascular diseases and cancer accounting for 43% and 25% of total deaths respectively. The other causes of death include diseases of respiratory organs (5%), diseases of digestive organs (4%), other diseases (17%) and injuries and poisonings (6%).

(Source: National Statistics)

Health care facilities

Medical Care

2008

2007

Number of Hospitals

267

270

Beds per 1,000

65.5

64.6

Total Number of doctors;1,000

42.9

42.1

Total deaths,1,000

75

74.6

(Source: National Statistics)

The total expenditure on health in 2009 amounted to 30.3 billion, corresponding to 11% of total GDP. The total public and private expenditure on health accounted for 77.5% and 22.4% of total health expenditure.


(Source: National Statistics)

[Top] Hard Infrastructure

Mass Public Transit

The mass public transport in the country is motor-cycles, bicycles, tri-cycles, omnibuses, scooters and passenger cars.

(Source: National Statistics)

Roadways

The total road network in the country is about 1,999 km, including 1,645 km of motorways and 354 km of express roads.

(Source: piarc.org)

Ports

The major ports in Austria include Port of Enns, Port of Krems, Port of Linz and Port of Vienna.

(Source: worldportsource)

Airports

Airport Name

Town

Runway length (ft.)

Graz

Graz

9,800

Innsbruck

Innsbruck

6,500

Klagenfurt

Klagenfurt

8,900

Linz

Linz

9,800

Salzburg

Salzburg

9,000

Schwechat

Vienna

11,800

(Source: aircraft charter)

Telecommunication

74.2% of the total population used the internet in 2010 compared to 71.6% in the previous year. Internet usage was highest in the age-group of 16-24 years, followed by the 25-34 years age group. Internet usage was at its lowest in the age group of 65-74 years (28.2%).

(Source: National Statistics)

Fixed telephone line users were registered at
3,253,000 and mobile phone users, 11,434,000 in 2009.

(Source:ITU, ITU1)

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