Austria Travel Tips Economy

ECONOMY

Austria is one of the most prosperous countries in the world. Manufacturing, including mining, accounts for nearly 30 per cent of GDP. Since World War II, much of the country’s industrial capacity has been in state hands and only recently has been removed from under the protective wing of the state holding company, OIAG. Iron and steel, chemicals, metalworking and engineering all fall into this category. Agriculture has proved equally successful, with domestic products meeting 90 per cent of the country’s food needs. Crops include sugar beet, potatoes, grain, grapes, tobacco, flax, hemp and wine. Austria has moderate deposits of iron, lignite, magnesium, lead, copper, salt, zinc and silver. Although there are some oil reserves and an extensive hydroelectric program, Austria must import the bulk of its energy requirements. Austria was a member of the European Free Trade Association (EFTA) before it joined the EU in 1995; Germany is now Austria’s largest trading partner by a considerable margin, followed by Italy, France, the UK and, outside the EU, Switzerland. Overall, the EU now accounts for approximately two thirds of total Austrian trade. The previously substantial trade with both the USA and the former USSR has fallen as a proportion of the total in recent years. After implementing austerity measures to cut government spending, Austria was able to meet the criteria for membership of the single European currency and joined it upon its inception at the beginning of 1999. Since then, in common with most of the EU, the economy has been sluggish. GDP growth was just over 2 per cent in 2002.