Damon Mcknight
Austria's economy is highly developed and export-oriented, with strong industrial, service, and tourism sectors. The country's GDP growth has been positive in recent years, reaching 3.3% in 2006 and nearly 5% in 2022. However, in 2023, Austria faced a mild recession, with a GDP decline of 1%. As a key trade hub in Europe, Austria's economic health is closely tied to its largest trading partner, Germany, and the broader European economic cycle. This interdependence has presented challenges due to recent global trade disruptions and high energy prices, impacting Austria's export-driven industries. In 2025 and beyond, Austria's GDP growth is expected to recover gradually, with forecasts predicting an increase in exports and a neutral fiscal stance.
| Characteristics | Values |
|---|---|
| Exports of goods and services as a percentage of GDP | 60.79% |
| Imports of goods and services as a percentage of GDP | 59.34% |
| Social expenditure as a percentage of GDP | 29.4% |
| General government deficit as a percentage of GDP in 2024-26 | >3% |
| Public debt-to-GDP ratio in 2024-26 | >80% |
| General government deficit as a percentage of GDP in 2025 | 3.7% |
| General government deficit as a percentage of GDP in 2026 | 3.5% |
| GDP growth in 2006 | 3.3% |
| GDP growth in 2021 | 4.2% |
| GDP growth in 2022 | 4.9% (nearly 5%) |
| GDP growth in 2023 | -0.8% |
| GDP growth in 2024 | -0.6% |
| GDP growth in 2025 | 1% |
| GDP growth in 2026 | 1.4% |
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What You'll Learn
Austria's exports and imports as a percentage of GDP
Austria has a highly developed, export-oriented economy with strong industrial, service, and tourism sectors. The country's GDP grew by nearly 5% in 2022, building on a 4.2% growth rate in 2021. However, economists predict a mild recession of -0.8% in 2023 due to the Russian invasion of Ukraine.
Austria's exports of goods and services as a percentage of GDP were 60.79% in 2022, while imports of goods and services as a percentage of GDP were 59.34%. This trade growth is 3.48% compared to a world growth of 5.34%.
Germany is Austria's largest trading partner, accounting for 32% of its imports and 28% of its exports. Austria also has strong economic ties to Germany, which is its largest source of foreign direct investment and the largest FDI target market. This close economic relationship means that any slowdown in the German economy directly impacts Austrian growth. Additionally, both countries were significantly impacted by the spike in energy prices due to their reliance on Russian natural gas for industrial production.
Austria's strategic location in the heart of Europe makes it a key trade and logistics hub between Western and Eastern Europe. The country is deeply embedded in European supply chains, particularly as a key supplier to Germany. Vienna, Austria's capital, is ranked as the fifth-richest NUTS-2 region within Europe, with a GDP per capita of €38,632.
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Austria's largest trading partner
Austria is a wealthy, mid-sized, export-oriented EU market. Its largest trading partner is Germany, which accounts for 32% of all imports and 28% of all exports. Germany is also Austria's largest source of foreign direct investment and the largest FDI target market. In 2023, Germany accounted for $64.1 billion worth of Austrian exports, or 28.6% of Austria's total exports. The same year, Austria incurred a country-specific trade deficit with Germany of -US$20.6 billion.
Austria's other top trading partners include the United States of America, Italy, Switzerland, Poland, China, and the United Kingdom. The US is Austria's fourth-largest investor source country, and Austria's most important export destination outside of Europe. In 2022, US exports to Austria were $6.4 billion, while imports from Austria were $19.4 billion.
In 2022, Austrian exports advanced 9.9% compared to the previous year, reaching a total value of $203.8 billion. Exports of goods and services as a percentage of GDP were 60.79%, while imports of goods and services as a percentage of GDP were 59.34%.
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Austria's GDP growth
Austria is a wealthy, mid-sized, export-oriented EU market. Its largest trading partner is Germany, which accounts for 32% of all imports and 28% of all exports. Austria's GDP growth has been positive in recent years, reaching 3.3% in 2006 and averaging 4.2% in 2021. In 2022, Austrian GDP grew by nearly 5%. However, economists predict a mild recession in 2023 due to the Russian invasion of Ukraine and its resulting impact on energy prices and inflation.
Labor movements are particularly strong in Austria, and they have a large influence on labor politics. The country has a highly developed industry, and international tourism is a crucial part of the national economy. Social expenditure is also significant, standing at roughly 29.4% of GDP.
Looking ahead, the Austrian economy is projected to face challenges in the near term. In 2024, Austria is expected to experience its second consecutive year of recession, with declining investment, lower exports, and weak private consumption. The government deficit is projected to increase, and the debt-to-GDP ratio is forecast to rise above 80%. However, growth is expected to resume in 2025, driven by exports to Austria's main trading partners and increased private consumption as consumer confidence is restored.
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Austria's social expenditure
Austria has a strong social security system, and its social expenditure is comparable to other European economies. The country's social welfare programmes were developed by social democrats in Vienna, who also played a role in shaping the country's healthcare system.
Austria's economy is heavily reliant on international trade, with Germany being its largest trading partner. Trade with other EU countries accounts for about 66% of Austrian imports and exports, while trade with central and eastern European countries makes up nearly 14%. This focus on trade has made Austria an export-oriented market.
In recent years, Austria's GDP growth has been positive, reaching 3.3% in 2006 and nearly 5% in 2022. However, economists predict a mild recession in 2023 due to the impact of the Russian invasion of Ukraine.
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Austria's economic forecast
Austria is a wealthy, mid-sized, export-oriented EU market. Its economy is highly developed, with international tourism being the most important part of the national economy. Austria's GDP grew by nearly 5% in 2022, building on a 4.2% growth rate in 2021. However, economists predict a mild recession in 2023, with a GDP drop of 0.8%, due to the Russian invasion of Ukraine.
Austria's exports of goods and services as a percentage of GDP are 60.79%, while its imports are 59.34%. Germany is Austria's largest trading partner, accounting for 32% of all imports and 28% of all exports. Austria's proximity to aspiring economies in the European Union and its access to the European Single Market also attract foreign direct investment.
The Austrian economy is currently in a recession, with a projected government deficit of over 3% of GDP in 2024-2026. The public debt-to-GDP ratio is also expected to rise above 80% of GDP. The construction sector is forecast to recover from its two-year slump in 2025, aided by monetary easing and a housing construction stimulus package. The unemployment rate is expected to increase moderately from 5.1% in 2023 to 5.3% in 2024, remaining elevated in 2025 before decreasing again in 2026.
Austria's expansionary fiscal stance in 2024 is expected to become broadly neutral over time. The development of the government deficit is projected to drive the debt-to-GDP ratio upwards, with the ratio at 78.6% of GDP in 2023 and expected to increase further. The country's macroeconomic forecasts are published by the European Commission in spring and autumn, with interim forecasts in winter and summer.
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Frequently asked questions
Austria's exports of goods and services as a percentage of GDP was 60.79% in 2016.
Germany is Austria's largest trading partner, accounting for 32% of its imports and 28% of its exports.
Austria's GDP growth rate has varied, with a recent high of 3.3% in 2006 and a low of 0% in 2013. In 2022, Austrian GDP grew by nearly 5%, and in 2023, it entered a mild recession with a predicted decline of 0.8%.
Austria's GDP growth is influenced by its strong industrial, service, and tourism sectors, as well as its strategic location in Europe. However, it faces challenges due to inflation, labour shortages, and its close economic ties with Germany, making it vulnerable to slowdowns in the German economy.
Vienna, Austria's capital, was ranked the fifth richest NUTS-2 region in Europe, with a GDP per capita of €38,632. Austria's average GDP growth from 1992 to 2017 ranked 13th among OECD countries.
