Lexi Webster
Austria is a country with a well-developed market economy, high standard of living, and strong export focus. It has a high degree of political stability and advanced infrastructure in health, telecommunications, and energy. As a member of the UN, Austria has committed to the 2030 Agenda for Sustainable Development, which includes 17 Sustainable Development Goals (SDGs) with 169 targets. These goals are monitored through a set of indicators, with Statistics Austria compiling the national SDG indicator set. In addition to its advanced economy, Austria also performs well in terms of human development indicators, such as the Human Capital Index, which measures the expected human capital attainment of a child by age 18.
| Characteristics | Values |
|---|---|
| Market Economy | Well-developed and welcomes foreign direct investment |
| Political Climate | Stable |
| Infrastructure | High-quality health, telecommunications, and energy |
| Standard of Living | High |
| Capital | Vienna, consistently ranks highly in quality-of-life rankings |
| GDP | More than 50% derived from exports |
| Trading Partners | Closely tied to other EU economies, especially Germany |
| Economy | Large service sector, advanced industrial sector, small but highly developed agricultural sector |
| Expropriation of Private Property | Rare, requires special legal authorization "in the public interest" |
| Privatization | No public enterprises privatized since 2007, Austrian public opinion is skeptical of further privatization |
| Foreign Investment | Equal treatment of foreign and domestic investors in prior privatizations |
| Business Freedom Score | N/A, but the score is between 0-100 with 100 indicating the freest business environment |
| Sustainable Development Goals | Austria adopted the UN 2030 Agenda for Sustainable Development in 2015, with goals including poverty eradication, gender justice, and climate change |
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What You'll Learn
Austria's market economy
Austria has a well-developed market economy that welcomes foreign direct investment, particularly in technology and R&D. The country enjoys political stability, high-quality health, telecommunications, and energy infrastructure, and a high standard of living. Vienna, its capital, consistently ranks highly in global quality-of-life rankings. Austria's economy is diversified and highly internationalized, with over 50% of its GDP derived from exports.
Austria's membership in the European Union has been instrumental in attracting foreign investment by providing access to the single European market. Germany, as Austria's largest trading partner, has historically been the main driver of the Austrian economy, but EU membership has reduced this economic dependence. Austria's trade with other EU countries now accounts for almost 66% of its imports and exports, and the European Union as a whole constitutes 70% of its foreign trade.
The United States is also a significant trading partner for Austria, ranking as its second-largest export market and third overall trading partner. Over 300 U.S. companies operate subsidiaries in Austria, and many are drawn to the country's strong business and industrial connections. Austria's hourly labour costs ranked 8th highest in the EU in 2018, at $40 per hour.
The Austrian government has not privatized any public enterprises since 2007, and public opinion is sceptical of further privatization. Foreign investors have nonetheless successfully gained majority or full control of enterprises in sectors such as telecommunications, banking, and steel. Expropriation of private property in Austria is rare and can only be undertaken by the government under special legal authorization "in the public interest," with just compensation provided to the owner.
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Expropriation of private property
Austria has a well-developed market economy that welcomes foreign direct investment, particularly in technology and R&D. The country also benefits from political stability, high-quality health, telecommunications, and energy infrastructure, and a high standard of living. The capital, Vienna, consistently ranks highly on global quality-of-life indices. Austria's economy is closely tied to other EU economies, especially Germany, its largest trading partner. The United States is one of Austria's top trading partners, ranking third in overall trade. The Austrian economy features a large service sector and an advanced industrial sector, particularly in high-quality vehicle components. The agricultural sector is small but highly developed.
Austria supports international efforts to promote human and economic development, reduce poverty, and boost shared prosperity. The country is a member of the International Development Association (IDA), which is part of the World Bank. IDA aims to reduce poverty by providing loans and grants to boost economic growth, reduce inequalities, and improve living conditions.
In terms of private property rights, expropriation of private property in Austria is rare and can only be undertaken by federal or provincial government authorities based on special legal authorization "in the public interest". This could include instances such as land use planning and infrastructure project preparations. The government can initiate such procedures only when there are no other alternatives to satisfy the public interest, when the action exclusively serves the public interest, and when the property owner receives just compensation. For example, in 2017-2018, the Austrian government expropriated Adolf Hitler's birth house, paying the former owner EUR 1.5 million (USD 1.6 million) in compensation to prevent it from becoming a neo-Nazi pilgrimage site.
Austrian laws, such as the Waste Management Act and the Water Management Act, adhere to the "polluter-pays principle." This means that the polluter remains liable even if the property is sold. If the polluter cannot be identified or fails to remedy the situation, the authorities can request that the landowner takes the necessary measures. Additionally, the buyer of a property may be liable for decontamination under public law if they were aware or could have been aware of the contamination.
Intellectual property rights are protected in Austria under national Trademark Law, Competition Law, Copyright Law, Patent Law, and Design Law. The European Convention for the Protection of Human Rights and Fundamental Freedoms, ratified by Austria, provides for the right to the peaceful enjoyment of one's possessions. The Austrian Fundamental Rights Act also states that all property shall be inviolable, protecting private rights with economic value against expropriation.
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Austrian public opinion on privatisation
Austria has a well-developed market economy that welcomes foreign direct investment, particularly in technology and R&D. The country has a large service sector, a robust industrial sector, and a small but highly developed agricultural sector. Austria's economy is closely tied to other EU economies, especially Germany, its largest trading partner. The United States is one of Austria's top two-way trading partners, ranking third in overall trade.
Austria has not privatized any public enterprises since 2007, and Austrian public opinion is generally skeptical of further privatization. In a 2013 poll, 58% of respondents believed that privatization was generally a bad idea, while only 22% thought it was a good idea. The Austrian government holds stakes in strategic firms, including energy group OMV, Telekom Austria, and Austrian Post. While the Economy Minister, Reinhold Mitterlehner, has expressed openness to privatization in certain cases, he emphasized that it should only be done if it brings strategic advantages and makes sense.
Austria supports international efforts to promote human and economic development, reduce poverty, and boost shared prosperity. The country is a contributor to the International Development Association (IDA), a part of the World Bank that provides loans and grants to the world's poorest countries to promote economic growth, reduce inequalities, and improve living conditions.
Expropriation of private property in Austria is rare and can only be undertaken by federal or provincial government authorities with special legal authorization "in the public interest." The government must demonstrate that there are no other alternatives to satisfy the public interest and that the owner will receive just compensation. Austria's commitment to transparency in government regulations is evident through its signing of the WTO Investment Facilitation for Development Agreement in 2021.
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Austria's role in the International Development Association (IDA)
Austria has a well-developed market economy that welcomes foreign direct investment, particularly in technology and R&D. The country has a high standard of living, with its capital, Vienna, consistently ranking highly in global quality-of-life rankings. Austria's economy is closely tied to other EU economies, especially Germany, its largest trading partner.
Austria supports international efforts to promote human and economic development, reduce poverty, and increase shared prosperity. The country experienced the benefits of the International Development Association (IDA) first-hand in the aftermath of World War II, evolving from an initial IBRD borrower to a trusted contributing partner.
The IDA, established in 1960, is a part of the World Bank Group that provides finance to the world's poorest countries to promote economic development. It offers more flexible loan terms than the regular International Bank for Reconstruction and Development (IBRD). Over the years, IDA has supported more than 8,000 projects in 114 countries, with a focus on economic and social development. It has been instrumental in creating jobs, providing access to clean water, education, roads, nutrition, and electricity, and addressing challenges such as pandemics, climate change, and conflict.
Austria's role in the IDA aligns with its commitment to improving living conditions in developing countries. The Austrian Development Agency (ADA), the operational unit of Austrian Development Cooperation, funds projects and programs with a total volume of over 557 million euros per year. These projects aim to combat poverty, ensure peace, and preserve the environment in developing nations.
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Austria's commitment to the UN 2030 Agenda for Sustainable Development
Austria has a well-developed market economy and is politically stable. It has a high standard of living, with its capital, Vienna, consistently ranking highly in global quality-of-life rankings. Austria's economy is closely tied to other EU economies, with more than 50% of its GDP derived from exports.
Austria is committed to the UN 2030 Agenda for Sustainable Development, which was established in 2015. The agenda includes 17 Sustainable Development Goals (SDGs) that establish social, economic, and environmental milestones to be achieved by 2030. These goals include:
- Ending poverty and hunger, including eradicating extreme poverty by 2030, and achieving food security and ending malnutrition.
- Providing inclusive and equitable quality education at all levels.
- Reducing all forms of violence and related death rates, ending abuse, exploitation, trafficking, and torture of children, and promoting the rule of law and equal access to justice.
- Improving health and well-being by achieving universal health coverage and access to quality healthcare, reducing newborn, child, and maternal mortality, and fighting communicable and non-communicable diseases.
- Protecting the environment by reducing greenhouse gas emissions and waste disposal.
Austria's commitment to the UN 2030 Agenda is in line with its support for international efforts to promote human and economic development, reduce poverty, and boost shared prosperity while protecting the planet.
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Frequently asked questions
Austria supports international efforts to promote human and economic development, reduce poverty, and increase shared prosperity on a liveable planet.
Austrian public opinion is sceptical of further privatisation, and there are no indications of any government privatisations in the near future.
Austria has a well-developed market economy that welcomes foreign direct investment, particularly in technology and R&D. The country has strong exports, with over 50% of its GDP derived from this.
The agricultural sector in Austria is small but highly developed.
The UN 2030 Agenda for Sustainable Development was adopted in 2015, with 17 Sustainable Development Goals (SDGs) and 169 targets agreed upon. In Austria, Statistics Austria took over the compilation of the national SDG indicator set in 2017.
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