Austria

Once the center of Austro-Hungarian Empire, Austria was reduced to a small republic after its defeat in World War I. Following annexation by Nazi Germany in 1938 and subsequent occupation by the victorious Allies in 1945, Austria's status remained unclear for a decade. A State Treaty signed in 1955 ended the occupation, recognized Austria's independence, and forbade unification with Germany. A constitutional law that same year declared the country's "perpetual neutrality" as a condition for Soviet military withdrawal. The Soviet Union's collapse in 1991 and Austria's entry into the European Union in 1995 have altered the meaning of this neutrality.

Main Airports

Innsbruck (INN) (Kranebitten), Salzburg (SZG) (Maxglan), Vienna (VIE) (Wien-Schwechat)

U.S. Embassy

Boltzmanngasse 16, Vienna 1091
tel. (43) (1) 313-39

Statistics

GDP: purchasing power parity:

$267.6 billion (2005 est.)

GDP - real growth rate:

1.9% (2005 est.)

GDP - per capita: purchasing power parity:

32,700 (2005 est.)

Inflation rate (consumer prices):

2.3% (2005 est.)

Labor force:

3.49 million (2005 est.)

Exports:

$122.5 billion f.o.b. (2005 est.)

Exports - partners:

Germany 31.3%, Italy 8.7%, US 5.9%, Switzerland 5.2%, France 4.2%, UK 4% (2005)

Imports:

$118.8 billion f.o.b. (2005 est.)

Imports - partners:

Germany 45.9%, Italy 6.6%, Switzerland 4.5% (2005)

Population:

8,192,880 (July 2006 est.)

Population growth rate:

0.09% (2006 est.)

Population Below Poverty Line:

5.9% (2004)

Major Industries:

construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood processing, paper and paperboard, communications equipment, tourism

Employing Workers: 103*

Registering Property: 28*

Enforcing Contracts: 14*

Closing a Business: 19*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Austria	Region
Procedures (number)	9
Time (days)	29

Austria Risk Assessment

Country Rating

Rating: A1

The political and economic situation is very good. A quality business environment has a positive influence on corporate payment behaviour. Corporate default probability is very low on average.

Risk Assessment

The economy continued to grow strongly in 2007, driven by exports and investment. Sales to Germany and Eastern European countries were good while corporate investment in machinery and equipment accelerated amid high production capacity utilisation. Household spending, except on housing, was disappointing, however, despite job growth.

Economic growth will slow somewhat in 2008. Exports will weaken, affected by the slowdown in the German economy and unfavourable exchange rates. That trend will remain moderate thanks to continuing strong demand from Eastern Europe. Corporate investment will develop along similar lines as will the building sector. Household consumption should accelerate, however, spurred especially by the conclusion of relatively generous wage agreements and by the continuing decline of unemployment.

Over the first nine months of 2007, bankruptcies declined four per cent after easing five per cent in 2006. The Coface payment-incident index for Austria is at a satisfactory level. After two years of favourable economic conditions, the moderate slowdown will be unlikely to undermine corporate financial health, which will remain good. The building sector (especially electrical installation) and the home furnishing (production, retail), textiles and, due to increased fuel prices, road transport sectors will continue to present above average risk.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation