Austria

Austria has a population of around 8 million and covers an area of 83,871 km². The capital city of the parliamentary republic is Vienna, the official language is German. Austria is part of the Euro zone and the GDP per capita is EUR 35,710. Austria uses the metric system and is on Central European Time. 

The average population density is 100 inhabitants per square kilometer.

88.1% of the population are Austrians, 11.9 % are foreigners (of which 41,4% citizens of EU countries, 29,7% citizens of former Yugoslavia and 11,3% citizens of Turkey). 

The Average Life Expectancy is 78,5 years for men and 83,6 years for women.

Austria is situated in the heart of Europe and borders Germany, the Czech Republic, Slovakia, Slovenia, Hungary, Italy, Liechtenstein and Switzerland.

The main urban areas are the capital city of Vienna (population 1,741.246 ) and the capitals of the federal provinces: Graz (population 265,778), Linz (population 191,501) and Salzburg (population 145,871).

At 3,798 m the Großglockner is the highest mountain in Austria.

Climate

The average temperature in summer is around 20°C with maximum temperatures of around 35°C. In winter temperatures can be as low as –15°C, although the average is around -4°C. There can be especially heavy snowfall in the mountain regions. Highest rainfall is in May and June.

Bodies of Water

The most important waterway is the Danube. The largest lake is the Neusiedel Lake in Burgenland - around 77% of its total area of 315 km² is in Austria, the rest is part of Hungary. The Attersee Lake has an area of 46 km², the Traunsee is 24 km². Also a part of Lake Constance (Bodensee), 24 km², lies in Austria (from a total area of 536 km²).

Raw Materials

The following raw materials are mined in Austria:  iron ore, lignite (brown coal), crude oil and natural gas, magnesite, silica sand, gypsum, lead and zinc ore, graphite and kaolin. Salt mining also plays a significant role. Another key raw material from Austria is wood.

Political system - Government, Parliament, Constitution

Austria is a parliamentary republic, founded on democratic principles and the separation of powers. The highest state representative is the Federal President, whose term of office lasts for six years. The two parliamentary chambers are the National Council (lower house) and the Federal Council (upper house) and these are the legislative bodies. The Federal Chancellor is the head of the Federal Government. The Federal Constitution, the State Treaty, the Declaration of Neutrality and the EU Accession Agreement form the constitutional basis of the Republic. Austria has been a member of the European Union since 1st January 1995.

Austria is currently ruled by a grand coalition of the Social Democrats and the People's Party. In line with the constitution, the next general election is due in 2018.

Austria is a federation made up of nine federal provinces, Vienna, Lower Austria, Upper Austria, Salzburg, Tyrol, Styria, Carinthia and Vorarlberg. Each of the nine provinces is led by a provincial government, headed by a Governor.

Basis and Structure of the Austrian Legal System

The Austrian legal system is based on Roman law and is structured in hierarchical layers. The General Civil Code - Allgemeines Bürgerliches Gesetzbuch (ABGB) - is one of the world's oldest codes of civil law. 

The legal system is structured according to a so-called tier system of laws, which decrees that laws and regulations must comply with the standards set by the higher tiers (eg. the constitution, constitutional laws). In the top tier are the Austrian Federal Constitution and individual constitutional laws, as well as the EU Acts of Accession. General federal laws and laws of the federal provinces are in the lower tiers. Statutory authorities can enact regulations or individual administrative rulings (Bescheide) in accordance with these

There is no Case Law system in Austria. The judge is free to reach his own decision or ruling, although previous rulings may be adduced in hearings.  

With entry to the EU on 1.1.1995, Austria adopted the EU legal framework. Austria is also a member of numerous international legal conventions such as the New York Arbitration Agreement of 1958 and the 1980 Vienna Convention on Contracts (international UN purchasing law).

National Economic Situation in Austria

Austria - a country which was one of the poorest in Europe after World War II - has developed into one of the richest countries in the world over the last few decades. 

Austria's economy was in a bad condition after the end of the Second World War - infrastructure was destroyed and industrial production was limited.

In 1948 the Marshall Plan was implemented. The aim was to build up an independent economy.

In the early years after the war the driving force of the economy was the state-owned industry. In 1952 the Schilling became the stable currency; economic growth in the years that followed moved into double figures. Businesses flourished and the quality of housing and infrastructure building improved.

One of the success factors of the Austrian economic boom was the 'Social Partnership'. The good co-operation between employers and representatives of the employees was the basis for reasonable wages and increased investments.

The economic boom ended in the 1970s due to the oil crisis.

The most important influences on the Austrian economy in the last ten to fifteen years have been Austria's entry to the EU (1995), the opening up of the former Eastern Bloc and the expansion of the EU to Eastern Europe.

Within Europe, Austria now shows an above average growth and one of the highest employment rates. Austria is among the most stable countries in the world. Inflation rates are low, the increase in national debt has been successfully reduced and the target of a balanced budget is within reach. A number of measures have been implemented to stimulate growth through liberalisation and privatisation and to secure the future through social system reforms.

Austria has been a member of the European Union since 1995 and is fully integrated into the common market. GDP (Gross Domestic Product) per capita is at EUR 38,540 (2014 nominal), putting Austria under the top ten within the EU as well as world-wide. 

For 2015 a 0.7% increase of Austria's GDP is predicted.

Overview of the most important economic data - Gross domestic product, growth prognoses, export trade data and other facts 

Gross National Income 2014: 327.20 billion €

GDP at current price: 329.3 billion €

GDP per capita 2014: 38,540 (nominal +1,2%)

The Austrian Economic Model and the Principle of the Social Partnership 

The economic model of Austria is based on the principles of political stability, social harmony, co-operation between employer and employee organisations, a stable homeland security and the full integration into the global economy. An especially productive atmosphere of co-operation between various interest groups and political parties prevails in Austria.

The Social Partnership is distinct to Austria and in practice extends to all areas of economic and social politics. Austria sets an example for the comprehensive and co-ordinated co-operation between different interest groups, i.e. the Austrian Federal Economic Chamber, the Austrian Chamber of Agriculture, the Austrian Federal Chamber of Labour and the Austrian Trade Union Association. These chambers are the legal representatives with mandatory membership for entrepreneurs or employees. The Austrian Trade Union Association offers optional membership.

Pakistan - Austria Economic Relations:

Austrian exports to Pakistan are undergoing a transformation process. There is a clear trend from individual projects (mainly in the hydropower sector) to a wider diversification.  2014 saw a slight increase in Austrian exports by 7,8% to 73,8 Mio. €, in the first 6 months of 2015 there was an increase by 80,3% in many product categories. There is development in chemical products, raw materials for textile products, ceramic products, steel and machinery as well as electric machinery. The primary exports products in the first six months of 2015 have been electric machinery (18.1 Mio € - +124%), staple fibers for the textile industry (14,7 Mio.€ -+106%) as well as machines and instruments (5,1 Mio. - +24,8%).

Imports from Pakistan amounted to 131,3 Mio.€ in 2014; in the first six months of 2015 they increased by 26,3 %, also due to the GSP+ effect (EU-customs privileges for certain Pakistani products). The main import products are clothing and accessories, leather goods, salt as well as toys and sports equipment.

The Austrian company OMV has been the largest international gas-producer in Pakistan since 1990 with 16% of local production and a crude oil equivalent of 110.000 barrels.

The companies Andritz and Voith Hydro are important actors in the hydro-power sector. ILF is involved in the planning of train connections in the mountainous north-east of Pakistan. TÜV Austria has invested in Lahore, issuing certificates to the Pakistani export industry.

Austria’s worldwide network, your advantage

ADVANTAGE AUSTRIA, with its more than 110 offices in over 70 countries, provides a broad range of intelligence and business development services for both Austrian companies and their international business partners. Our 800 employees and 35 consultants around the world can assist you in locating Austrian suppliers and business partners. We organize more than 1,200 events every year to bring business contacts together. Other services provided by ADVANTAGE AUSTRIA offices range from introductions to Austrian companies looking for importers, distributors or agents to providing in-depth information on Austria as a business location and assistance in entering the Austrian market.

International Relations

Austria is not only a member of many international organisations, it also hosts their headquarters. This underlines the importance of Austria and Vienna with regard to international relations. 

Austria has been a member of the European Union (EU) since 1.1.1995. In addition Austria is also a member of the following organisations: United Nations, the Organisation for Economic Co-operation and Development (OECD), the Organisation for Security and Co-operation in Europe (OSCE), the World Trade Organisation (WTO), the World Bank Group, the International Monetary Fund (IMF), the World Health Organisation (WHO) and many others.

In 1995 Vienna became one of the headquarters of the United Nations, besides New York, Geneva and Nairobi. Many significant organisations are based there. 

Austria's development cooperation is an integral part of a foreign policy focused on security and stability. Poverty, violence and environmental destruction do not stop at a country's borders. Water and electricity supplies are the basics for any progress, education opens up new perspectives and building up democratic structures brings about stability. 

The main aims of development co-operation are to reduce the inequality between the rich and the poor, safeguard peace and security and protect the environment. The Austrian Federal Ministry of Europe, Integration and Foreign Affairs is responsible for the development of strategies and programs as well as the co-ordination of Austria’s development policy. The goals are laid out annually in a 3-year program.  The current program (2013-2015) concentrates on the following key regions: West Africa and the Sahel, East Africa und the Horn of Africa, Southern Africa, Himalayas-Hindu Kush Region, Palestinian Territories, Central America, the Caribbean Region, the Danube Region and the Western Balkans, Black Sea Region/South Caucasus.

The Austrian Development Agency (ADA) is responsible for implementing all bilateral programs and projects in the partner countries and controls the budget with which the bilateral programs are implemented. The ADA works closely with non-governmental organisations and private business.

The Austrian Research Foundation for International Development (ÖFSE) ÖFSE offers a comprehensive information service on Austrian and international development policy.  It provides information about developing countries, development co-operation and development policy. The scientific department of the ÖFSE provides analyses and advice on the following topics: Austrian Development Co-operation and Development Policy, International Development and Economic Policy, Education co-operation, Education and sustainable development and Strategies for reducing poverty. 

Austria's Exports 2014

As Austria is an industrial country with a small domestic market, the export economy is particularly important. 

2014 saw moderate growth for Austrian exports with a rise of 1.8%. The value was therefore EUR 128.1 billion and the export quota 2014 (product and service exports as a percentage of GDP) was at 53.4%. Imports 2014: EUR 129.8 billion.

The most important trading partners are Germany, Italy, USA, Switzerland and France.

Austria's proximity to Central and Eastern European states is a key factor in the increasing significance of trade and the economic networking with these countries. The share of Austrian exports in these regions reached 17.8% in 2014.

The most important product groups for export are: Mechanical engineering and terotechnology, vehicles and automotive parts, iron, steel and metal goods, food and drinks, medical and pharmaceutical products, synthetics and synthetic products, Paper and cardboard. Austrian exports are also heavily influenced by service exports, with tourism taking first place in this sector. 

The Austrian economy is dominated by small and medium enterprises (SMEs). The most important industrial sectors in Austria are the Food and Drink industry, Mechanical and Steel Engineering, Chemical and Automotive industry, Electrics and Electronics industry and Wood, Pulp and Paper industry. 

The majority of Austrian goods exports come from these industrial sectors.

The key economic sectors for each region:

Upper Austria: Iron, steel, chemical and mechanical engineering.

Salzburg: Electrics, wood and paper, national services in wholesale and transport.

Vorarlberg: Textiles, clothing.

Carinthia: Wood, pulp and paper industry.

Styria: Automobiles, iron and steel, manufacturing.

Tyrol: Glass, Wood.

Vienna: Financial Services.

Tourism plays an extremely important economic role in Austria. In 2014 there was a total of almost 131.9 million overnight stays. Around 25.3 million foreign visitors came to Austria, with almost 96.2 million overnight stays (3/4 of the total overnight stays). The majority of visitors come from Germany, the Netherlands, Switzerland and Liechtenstein, Italy and Great Britain.