Austria's Wealth: A Comprehensive Overview

Austria is a wealthy country, with a high standard of living and a strong economy that has helped it navigate crises such as the euro crisis in 2010 and the coronavirus pandemic. In terms of GDP per capita, Austria is among the top 20 in the world, and its average household net-adjusted disposable income per capita is $37,001 a year, higher than the OECD average of $30,490.

Austria's wealth can be attributed to various factors, including its history as a European power, its strong labour movement, its successful export-oriented industries, and its thriving service sector, particularly tourism. Additionally, Austria's commitment to social welfare and job creation has contributed to its economic success and stability.

Austria's GDP per capita is among the top 20 in the world

Austria is a wealthy country, with a highly developed social market economy. It is one of the fourteen richest countries in the world in terms of GDP per capita, which was $58,669 in 2024, ranking 13th globally. Austria's GDP per capita is projected to increase by 18.49% between 2024 and 2029, reaching a new peak of $69,518. This growth in GDP per capita underscores Austria's strong economic performance and its position among the top 20 countries in the world in this regard.

Austria's economic success is attributed to various factors. Firstly, the country has a strong service sector, which generates the majority of its GDP. Vienna, the nation's capital, has become a hub for finance and consulting, establishing itself as a gateway to Eastern Europe. Additionally, international tourism plays a significant role in the economy, accounting for around 10% of Austria's GDP. The country's stunning Alpine landscape and rich cultural heritage, including its renowned classical music history, make it a major tourist destination.

Another factor contributing to Austria's high GDP per capita is its strong labour movement. The Austrian Trade Union Federation (ÖGB) represents over half of the country's wage and salary earners and pursues a moderate, consensus-oriented wage policy. This stable and cooperative labour environment fosters a peaceful social climate and contributes to the country's economic growth.

Austria's membership in the European Union (EU) has also positively influenced its economy. Austria's main trading partner has historically been Germany, but EU membership has reduced its economic dependence on any single country. Access to the European Single Market and proximity to aspiring EU economies have attracted foreign investors, further bolstering Austria's economic development.

Furthermore, Austria has a highly efficient social security system, with social expenditure comprising approximately 29.4% of its GDP. This commitment to social welfare has helped maintain economic stability and supported the well-being of its citizens. Overall, Austria's high GDP per capita reflects its successful economic policies, diverse economic sectors, and commitment to social welfare, solidifying its position among the top 20 countries in the world.

The country has a strong labour movement

Austria is a wealthy country, with a high standard of living and a strong labour movement. The country has a history of commitment to social market economics, where individual and corporate prosperity are dependent on general prosperity.

The Austrian Trade Union Federation (ÖGB) is a key example of the country's strong labour movement. The ÖGB is made up of constituent unions with a total membership of about 1.5 million, which is more than half of the country's wage and salary earners. The ÖGB pursues a moderate, consensus-oriented wage policy, cooperating with industry, agriculture, and the government on a broad range of social and economic issues in what is known as Austria's "social partnership".

Austria's labour movement has a large influence on labour politics, and the country's system of economic and employment policies is built on a central commitment to social market economics. This commitment is played out through a "social partnership" system of representatives from labour, industry, government, and academia, where job security, wages, pensions, unemployment insurance, and other workplace standards are discussed and negotiated, leading to recommendations for Parliament and ministries.

The country's strong labour movement is also reflected in its employment rates. In 2022, the average number of job holders in Austria was 3,913,652, of whom 926,992 were foreign workers. The labour market in 2022 was characterised by a sharp increase in companies' demand for staff, and the unemployment rate stood at just 6.3%.

Additionally, Austria has a well-developed social security system, with social expenditure standing at roughly 29.4% of GDP. The country also has a generous welfare state, which provides a safety net for its citizens and helps to steady consumption during economic downturns.

Overall, Austria's strong labour movement is a key feature of its economic and social landscape, with labour unions and employment policies playing a significant role in the country's prosperity and high standard of living.

Austria's economy is closely tied to Germany's

Austria is a wealthy country with a high standard of living and a strong economy. It has a highly developed social market economy and is one of the fourteen richest countries in the world in terms of GDP per capita. Austria's economy is closely tied to Germany's, its main trading partner, but it is also linked to other EU economies.

Germany has historically been Austria's primary trading partner, making the Austrian economy susceptible to fluctuations in the German economy. However, Austria's membership in the European Union has helped it develop closer connections with other EU economies, reducing its economic reliance on Germany. Austria's membership in the EU has also attracted foreign investors, who are drawn to the country's access to the European Single Market and proximity to aspiring EU economies.

Germany and Austria have a long shared history, dating back to the Holy Roman Empire of the German Nation, which included both countries. Even today, numerous German companies have offices and production facilities in Austria, and it is a popular tourist destination for Germans. In turn, Austria has become a significant source market for tourism in Germany. The two countries also have strong cultural and academic exchange, with many German conductors, musicians, directors, and actors working in Austria, and vice versa.

Austria's economy is characterised by a large service sector, a robust industrial sector, and a small but highly developed agricultural sector. The service sector, including tourism, generates the majority of Austria's GDP. Vienna, in particular, has become a hub for finance and consulting and is known for its high quality of living. The manufacturing sector is also productive and competitive, contributing to the country's positive trade balance.

In summary, Austria's economy is closely tied to Germany's, but it has also developed strong connections with other EU economies. The country's high standard of living, skilled labour force, and diverse economic sectors contribute to its overall economic success and stability.

Austria has a robust export-focused industry

Austria is a wealthy, mid-sized, export-oriented country. In 2023, it shipped US$223.9 billion worth of exports around the globe, with a year-over-year increase of 9.9% compared to 2022. Austria's exports are paid for in US dollars, which makes them relatively less expensive for international buyers.

Austria's main export partners are Germany, the United States of America, Italy, Switzerland, Poland, Slovakia, Belgium, France, Hungary, the Czech Republic, the United Kingdom, and China. The majority of its exports (79.4%) go to fellow European countries, with smaller percentages going to North America, Asia, Africa, Latin America, and Oceania.

Austria's top exports include machinery (including computers), electrical machinery and equipment, vehicles, pharmaceuticals, iron and steel, plastics, mineral fuels (including oil), and optical, technical, and medical apparatus. These exports generated two-thirds of the overall value of Austrian exports.

Austria's export-oriented economy is underpinned by a highly efficient and strong social security system, with social expenditure making up about 29.4% of GDP. The country also has a strong labour movement, with labour unions comprising about half of the country's wage and salary earners. This has given labour movements a large influence on labour politics, and they often pursue a moderate, consensus-oriented wage policy.

Austria's robust export-focused industry is also supported by its well-developed infrastructure and transportation systems, as well as its highly educated workforce. The country's commitment to social market economics, where individual and corporate prosperity depend on general prosperity, has contributed to its economic success.

The country has a high standard of living

Austria is a wealthy country with a high standard of living. It has a strong economy that has helped it navigate crises such as the euro crisis in 2010 and the coronavirus pandemic. According to the OECD, Austria's gross domestic product (GDP) is on par with the organisation's top performers, and inequality is lower than in most advanced countries.

Austria's standard of living is reflected in its high rankings in quality of life, jobs, health, environmental quality, social connections, safety, and life satisfaction. The country's average household net-adjusted disposable income per capita is USD 37,001 per year, higher than the OECD average of USD 30,490. Additionally, about 72% of people aged 15 to 64 in Austria have a paid job, above the OECD employment average of 66%.

The country's strong economy is supported by its robust export-focused industries and many specialised small and medium-sized businesses. The primary industries include metal, electrochemistry, engineering, and food and luxury commodities. Austria is also a leader in the European Union in terms of its use of hydroelectric power for energy production.

Austria's service sector is the primary contributor to its economy, accounting for almost 63% of the gross domestic product and employing more than 70% of its active population. Tourism plays a significant role in the service sector, with one in every six jobs in this industry. Austria's diverse landscapes, beautiful towns, renowned winter resorts, and developed tourist sector attract international visitors and bring substantial foreign revenue into the country.

The country's high standard of living is further enhanced by its commitment to social welfare, which helps maintain stability and low unemployment rates. Austria's exports, services, and high taxes, particularly on luxury goods, enable it to maintain a positive trade balance and a low debt-to-GDP ratio. This has allowed the country to protect its economy during various crises and maintain social benefits and cushioning measures for its citizens.

Overall, Austria's high standard of living is a result of its strong economy, diverse industries, thriving service sector, commitment to social welfare, and ability to navigate global challenges.

Frequently asked questions