<hdr>The World Factbook 1994: Austria<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> Austria boasts a prosperous and stable socialist market economy with a sizable but falling proportion of nationalized industry and extensive welfare benefits. Thanks to its raw material endowment, a technically skilled labor force, and strong links to German industrial firms, Austria occupies specialized niches in European industry and services (tourism, banking) and produces almost enough food to feed itself with only 8% of the labor force in agriculture. Increased export sales resulting from German unification, boosted Austria's economy through 1991, but Austria's GDP growth slowed to 2% in 1992 and -0.5% in 1993 due to the weak international economy, particularly in Germany—its largest trading partner. GDP growth will resume slowly in 1994, with estimates ranging from a 0.5% to a 1% increase. Unemployment has risen to 7% as a result of the slowdown and will continue to rise in 1994. Problems for the l990s include an aging population, the high level of subsidies, and the struggle to keep welfare benefits within budgetary capabilities. Austria's government has taken measures to make the economy more liberal and open by introducing a major tax reform, privatizing state-owned firms, and liberalizing cross-border capital movements. Although it will face increased competition, Austria should benefit from the continued opening of eastern European markets, as well as the 1 January 1994 start of the European Economic Area which extends the European Union rules on the free movement of people, capital, and goods and services to four members (including Austria) of the European Free Trade Association (EFTA). Austria has concluded membership negotiations with the European Union and is expected to join in early 1995, thus broadening European economic unity. The government, however, plans to hold a national referendum on the matter on 12 June 1994; support for and opposition to membership appears about equal.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$134.4 billion (1993)
<item><hi format=bold>National product real growth rate:</hi> -0.5% (1993)
<item><hi format=bold>National product per capita:</hi> $17,000 (1993)
<item>• <hi format=ital>consumption per capita:</hi> 6,300 kWh (1992)
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<item><hi format=bold>Industries:</hi> foods, iron and steel, machines, textiles, chemicals, electrical, paper and pulp, tourism, mining, motor vehicles
<item><hi format=bold>Agriculture:</hi> accounts for 3.2% of GDP (including forestry); principal crops and animals—grains, fruit, potatoes, sugar beets, sawn wood, cattle, pigs, poultry; 80%-90% self-sufficient in food
<item><hi format=bold>Illicit drugs:</hi> transshipment point for Southwest Asian heroin transiting the Balkan route and Eastern Europe
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>donor:</hi> ODA and OOF commitments (1970-89), $2.4 billion
