Austria Economy

March 9, 2010Austriaby EconomyWatch Content

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Austria is a landlocked country located in Europe, with a population of approximately 8.3 million people. The country is surrounded by Germany and Czech Republic to the north, Slovakia and Hungary to the east, Switzerland to the west and Italy to the south.

With its location in the Alps, Austria is a mountainous country. Therefore, the land is rich in oil, coal, timber, iron ore, lignite, antimony, magnesite, copper, zinc, tungsten, graphite and salt.  Austria’s economy is the 12th richest country in the world, has a developed market and high standard of living. It is for this reason that even after facing a contraction in the recession hit years of 2008-2009 and experiencing a 3.6% decrease in growth, Austria’s economy seems to be on the right track, with projected growth of 1% in 2010. The Austrian economy boasts a large service sector, a sound industrial sector and a rather small, yet well developed, agriculture sector. The country covers an area of 83,860 square kilometers.

Austria Economy: GDP

Austria’s GDP track record has been reflective of Germany’s economy for a long time. However, ever since the country joined the European Union, its economy has gained independence and is one of the best performing economies in Europe.          

With a population of 8,356,707 (2009 est.) and a substantial work force, Austria has managed to provide employment for a large part of the population and the unemployment rate is as low as 4.7%. Through a major shift towards export, the country has managed to grow beyond its late 90’s figures of 1%. Barring the recession years, the economy grew at almost 3.5% in 2007 and 2% in 2008.

 

With increased trade, the currency has grown stronger as well and stands at 0.7338 (2009) for every dollar. The GDP (purchase power parity) has increased to $323.1 billion (2009 est.). The GDP per capita too seems bright at $39,400 (2009), even after having touched $40,800 in 2008.

 

The inflation, irrespective of the turmoil years, has been maintained at a comfortable 0.1% (2009 est.), after a rather higher 3.2% in 2008. A major source of employment in Austria is the services sector, which accounts for 70% of the jobs, followed by the industries and agriculture segments. Proportionately, the services sector contributes the maximum to the GDP at 65.8% (2009 est.)

 

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