Austria

Economic indicators

Austria has a well-developed social-market economy with a high standard of living in which the government has played an important role. After facing a slow down in its economy during the period of 2001-2003 (being the longest low-growth period since World War II, with a GDP growth rate of 1.1% in 2003), the country’s economy recovered and grew at the rate of 3.3% in both 2006 and 2007 respectively; thanks to the booming exports in response to strong world economic growth particularly in the economy of Germany – the country’s favourite trade partner. IMF forecasts a small slowdown of the growth rate at 2,5% for 2008. Austria is making sizable investments in Central and Western European countries. Inflation is low (estimated at +1.9% in 2006) and the unemployment rate is stable (arround 4.5%).

Main sectors of industry

The agricultural sector contributes nearly 2% to the country's GDP and employs around 6% of its active population. Cattle breeding and wine growing are the main agricultural activities; with organic agriculture developing rapidly (10% of the agricultural produce in the country is organic). Austrian farms, like those of other west European mountainous countries, are small and fragmented, and hence agricultural production becomes relatively expensive. However, Austria benefits from large communitarian agricultural subsidies The main industrial sectors are metallurgical, electro-chemical and engineering; but most of the enterprises in this sectors are relatively small on international scale. The country has very little mineral resources like iron, lead and copper. From 2003 onwards, the government has started liberalisation of the energy sector (mainly electricity and natural gas) which has paved way for privatisation. The service sector contributes nearly 70% to GDP and employs two-thirds of the country's active population. Tourism is well developed: nearly 17 million tourists visit Austria annually.

Source: World Bank - World Development Indicators - last available data.

Sources of economic information

Statistical Office

Central Bank

Stock Exchange

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Political outline

Executive Power

President is the chief of the state and the Federal Chancellor is the head of the government. Chancellor enjoys the executive powers. President is elected by direct popular vote for a six-year term and the Chancellor is traditionally chosen by the President from the majority party in the National Council. Council of Ministers is chosen by the President on the advice of the Chancellor.

Legislative Power

The legislature in Austria is bicameral. The parliament consists of two chambers: National Council (the lower house), its members elected by direct popular vote to serve four-year terms, and Federal Council (the upper house) with its members elected by provincial parliaments to serve five- or six-year terms. President can dissolve the National Council on recommendation of the Chancellor. The Federal Council only reviews legislation passed by the National Council and can delay but not veto its enactment. Most authority, including that of the police, rests with the federal government, but the states have considerable responsibility for welfare matters and local administration.

Main political parties

The major political parties in the country are: OVP (the conservative People's Party), SPO (Social Democratic Party), FPO (the right-wing Freedom Party), and the Greens.

OVP finds support from farmers, large and small business owners and some Catholic groups, mostly in the rural regions of Austria; while as the SPO traditionally draws its constituency from blue- and white-collar workers.

Current political leaders

President: Heinz FISCHER (since July 2004) – SPO
Chancellor: Alfred GUSENBAUER (since January 2007)-SPO                                                                                                                                                                                                                                                                                                 Vice Chancellor: Wilhelm MOLTERER (since January 2007) - OVP

Next election dates

Presidential election: April 2010
National Council election: In the fall of 2010-2011

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