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Austria has achieved sustained economic growth since the end of World War II. In 2024, the country had a nominal GDP per capita of $58,669, ranking 13th globally. Vienna, meanwhile, was ranked the fifth-richest NUTS-2 region within Europe, with a GDP per capita of €38,632. Austria's economy is closely integrated with other EU member countries, particularly Germany, and its growth outlook is reliant on Germany's industrial performance.
| Characteristics | Values |
|---|---|
| Average real GDP growth rate | 1.2% (2012-2022) |
| Real GDP growth rate (2022) | 4.8% |
| Real GDP growth rate (1995-1999) | 1.7%, 2%, 1.2%, 2.9%, 2.2% |
| GDP growth rate (2006) | 3.3% |
| GDP growth rate (2016) | 1.5% |
| GDP growth rate (2024) | -0.9% |
| GDP growth rate (Q4 2024) | 2.5% |
| Nominal GDP per capita (2024) | $58,669 |
| GDP per capita (Vienna) | €38,632 |
| GDP from the agricultural sector | Less than 3% |
| GDP from the service sector | Majority of Austria's GDP |
| GDP from tourism | 10% |
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What You'll Learn
Austria's GDP growth since World War II
Austria's post-World War II history has been one of sustained economic growth. In the 1950s, the country's rebuilding efforts resulted in an average annual growth rate of over 5% in real terms, which continued at about 4.5% through most of the 1960s. The agricultural sector's contribution to GDP has declined since 1950, now contributing less than 3% despite farmers providing about 80% of domestic food requirements.
Austria's GDP growth continued in the 1990s, albeit at a more moderate pace, with real GDP growth of 1.7%, 2%, and 1.2% in 1995, 1996, and 1997, respectively. The economy rebounded with a real GDP expansion of 2.9% in 1998 and 2.2% in 1999. Austria's membership in the European Union (EU) in 1995 brought both benefits and challenges, attracting foreign investors and increasing the country's international competitiveness.
Vienna, the country's economic powerhouse, has become a hub for finance and consulting, establishing itself as the "door to the East." Viennese law firms and banks are leading players in business with new EU member states. Vienna's GDP per capita is €38,632, ranking it as the fifth-richest NUTS-2 region within Europe.
Tourism is a significant contributor to Austria's economy, accounting for around 10% of its GDP. In 2001, Austria was the tenth most visited country globally, attracting over 18.2 million tourists. The country's strong labour movements have a notable influence on labour politics, and its highly developed industry and service sectors are key drivers of economic growth.
Austria's GDP growth rate in 2023 was −0.95%, and its GDP per capita was $46,346, a decrease from the previous year. Despite recent fluctuations, Austria's economy has demonstrated resilience and dynamism since World War II, adapting to the challenges and opportunities presented by global economic trends.
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The agricultural sector's contribution to GDP
Austria has achieved sustained economic growth since the end of World War II. In the 1950s, the country's rebuilding efforts led to an average annual growth rate of more than 5% in real terms, which continued at about 4.5% throughout the 1960s. Austria joined the EU in 1995, which brought economic benefits and challenges. The country attracted foreign investors due to its access to the single European market. Austria's economy is highly integrated with other EU member countries, particularly Germany.
The agricultural sector's contribution to Austria's GDP has been in decline since 1950, currently sitting at less than 3% of the country's GDP. Austrian farms, similar to those in other Western European mountainous countries, tend to be small and fragmented, making production relatively expensive. Despite this, Austrian farmers provide approximately 80% of the country's domestic food requirements.
Since joining the EU, the Austrian agricultural sector has undergone substantial reform under the EU's Common Agricultural Policy (CAP). This has likely influenced the sector's contribution to the country's GDP, which was 1.39% in 2022. While agriculture plays a role in the economy, the service sector is the most significant contributor, generating the majority of Austria's GDP at 62.14% in 2022.
Tourism is also an important part of Austria's economy, accounting for around 10% of its GDP. In 2001, Austria welcomed over 18.2 million tourists, making it the tenth most visited country in the world. The country's ski resorts, such as Arlberg and Kitzbühel, have become increasingly popular with visitors from Eastern Europe, Russia, and the United States, reducing the sector's historical dependence on German guests.
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The role of tourism in Austria's GDP
Austria has achieved sustained economic growth since the end of World War II. The country's GDP growth rate has fluctuated over the years, with periods of higher growth in the 1950s and 1960s, and more moderate growth in the late 1990s. In recent years, Austria's GDP growth has accelerated, reaching 3.3% in 2006 and maintaining steady growth between 2002 and 2006. In 2024, Austria's nominal GDP per capita was $58,669, ranking 13th globally.
Tourism plays a crucial role in Austria's economy, contributing significantly to its GDP. In the pre-pandemic year of 2019, tourism accounted for 7.6% of Austria's GDP, according to the Austrian Tourism Satellite Account. This figure dropped to 4.5% in 2020 and 4.1% in 2021 due to the COVID-19 pandemic. However, tourism remains an important industry for the country, with international tourism spending reaching approximately 18.9 billion US dollars in 2007.
Austria has become one of the leading tourism destinations worldwide, attracting visitors with its diverse natural attractions and cultural offerings. The majestic Alps, covering nearly two-thirds of the country's surface, are a significant draw for skiing, hiking, and mountaineering enthusiasts. The country boasts numerous ski resorts, such as Arlberg and Kitzbühel, which have become popular destinations for Eastern Europeans, Russians, and Americans. Austria's landscape also features beautiful rivers, lakes with drinking water quality, and national and nature parks, providing a range of outdoor recreational activities.
The country's rich history and culture, including landmarks such as Schönbrunn Palace, Tiergarten Schönbrunn, and the birthplace of Mozart in Salzburg, also attract tourists. Vienna, the financial and cultural hub of Austria, is a popular destination for tourists, offering attractions such as its cathedral, wine pubs, and music events. Additionally, the country's central location in Europe, high-quality hospitality, and unique culinary art enhance its appeal as a tourist destination.
The service sector, including tourism, generates the vast majority of Austria's GDP. The tourism industry provides direct and indirect employment opportunities, with an 8.3% full-time employment rate in 2019, contributing to the overall economic growth of the country.
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Vienna's economic status
Vienna, the capital of Austria, has grown into a finance and consulting hub and has established itself as a gateway to Eastern Europe. It is Austria's richest region, generating 25.1% of the country's GDP, with a GDP per capita of €56,600 as of 2024. Vienna's economy is based on commerce and industry, with the service sector providing 75% of all jobs in the city. The city is home to many leading industries, including the manufacture of machinery, electrical products, chemicals, and metal products. Viennese law firms and banks are among the leading corporations in business with the new EU member states. Vienna also provides approximately one-fourth of the jobs in the country and produces almost one-third of the gross national product.
Tourism is also an important contributor to Vienna's economy, with around two million travellers visiting the city annually. The city's international trade fair, which takes place twice a year, is of special importance, attracting exhibitors and visitors from both European and overseas countries. Vienna has a high proportion of educated residents, with five universities located in the city. The city's education system, social services, and health services contribute to the quality of life for its citizens. Vienna has also taken a proactive stance on cooperative, connected, and automated mobility, aiming to ensure that automation works for the city and its economy.
Vienna has experienced periods of economic growth and decline throughout its history. During its time as the capital of Austria-Hungary (1867-1918), the city's population increased sharply due to industrialization and migration. However, after World War I, the population declined as many Czechs and Hungarians returned to their ancestral countries. Vienna's economy received a boost during the post-World War II reconstruction period, and the city became a hotbed for international espionage during the four-power occupation. Vienna joined the EU in 1995, which brought economic benefits and challenges, including an influx of foreign investors attracted by its access to the single European market.
Overall, Vienna has a strong and diverse economy, contributing significantly to Austria's economic growth and development. The city's high GDP, educated workforce, and focus on innovation and international trade make it a key driver of prosperity for the entire country.
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Austria's economic ties with Germany
Austria and Germany have a long shared history, and their economic ties are strong. Both countries have a close relationship, with Germany being Austria's most important economic partner. Austria's membership in the EU has attracted foreign investors, and its access to the European Single Market and proximity to other EU economies have further enhanced its economic position.
The two countries have a history of economic agreements, with the Weimar Republic and Austria concluding an economic agreement in 1920. During the Cold War, they continued to cooperate closely in economic and cultural fields, and Austrian companies have since acquired many German companies, with 854 German firms acquired by Austrian parent companies to date.
Austria's economy is closely integrated with other EU member countries, especially Germany, as a member of the Economic and Monetary Union of the European Union (EMU). Vienna, in particular, has become a finance and consulting hub, with Viennese law firms and banks leading in business with new EU member states.
Tourism is a significant sector of the Austrian economy, accounting for around 10% of its GDP. While this sector was once heavily dependent on German guests, it has diversified in recent years with an increase in visitors from Eastern Europe, Russia, and the US.
Media markets are another area of close cooperation, with German publishing houses holding shares in Austrian media companies and co-productions in radio, television, and film. This has resulted in extensive coverage of each country in the other's media, influencing public debate on various issues, including economic policies.
Overall, Austria and Germany have a long history of economic cooperation, and Germany remains a crucial economic partner for Austria, with extensive bilateral ties and integration within the EU.
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Frequently asked questions
Austria's GDP growth has been steadily increasing since the end of World War II. In 2006, the country's GDP growth reached 3.3%.
Austria's service sector generates the vast majority of its GDP. Tourism is also important, accounting for around 10% of the total.
Austrian agriculture has been undergoing substantial reform since the country joined the EU in 1995. The sector's contribution to GDP has declined since 1950 to less than 3%.
Analysts predict a slight upward trend in Austria's GDP in 2025, supported by real wage growth and the easing of monetary policy. However, Austria's growth is closely tied to Germany's industrial performance, which may pose a challenge.
