IV.

Economy

The Austrian economy was based on a balance of private and public enterprise. However, the basic industries were nationalized after 1946; these include all oil production and refining; the largest commercial banks; and the principal companies in river and air transport, rail equipment, electrical machinery and appliances, mining, iron, steel, and chemical manufacturing, and natural gas and electric power production. A programme of privatization was initiated that resulted in many industries passing out of public ownership by the early 1990s. By the mid-1990s only a few enterprises, among them the postal service, parts of the banking system, and fixed-line telecommunications, remained in the public sector.

The gross national product (GNP) of Austria in 2004 was US$264 billion (World Bank estimate), or US$39,750 per capita. In the 2006 the estimated annual national budget included revenues of US$128.2 billion and expenditures of US$135.3 billion. In 2006 the estimated gross domestic product (GDP) was US$322 billion.

A.

Agriculture, Forestry, and Fishing

Of the total land area, about 16.8 per cent is considered suitable for cultivation. Meadows and pastures constitute about 24 per cent of the total land area, and market gardens and vineyards account for slightly more than 1 per cent. About half of Austrian farms are under 10 hectares (25 acres) in size. Agriculture contributes about 1.7 per cent of Austrian GDP (2006, including forestry and fishing), and employs about 6 per cent of the working population (2005).

Major products and yearly yields in 2006 included sugar beet (2 million tonnes), maize (1.47 million), wheat (1.40 million), barley (1 million), and potatoes (654,621 tonnes). Livestock included 3 million pigs, 2 million head of cattle (of which about one quarter were dairy cows), 325,728 sheep, and 85,000 horses.

Approximately 46.1 per cent of the total land area is forest or woodland. A comprehensive reforestation and conservation programme has been in progress since the early 1950s to compensate for damage inflicted during World War II and for post-war overcutting of forest trees. Almost 80 per cent of the forests consists of conifers, mostly spruce, which are important in the paper and pulp industry as well as in building construction. In 1995 about 13.8 million cu m (488 million cu ft) of timber were felled.

Processing and consumption of fish are low, and most fish are imported. Fishing in the mountain streams is a popular sport.

B.

Mining

The average annual production of principal minerals in the late 1980s included iron ore (1.6 million tonnes), lignite (1.3 million), crude oil (1.1 million), salt (786,000), magnesite (654,000), and zinc ore (20,014). Other minerals commercially mined included copper, lead, antimony, graphite, gypsum, kaolin, and talc; there was also drilling for natural gas.

C.

Manufacturing

The Austrian manufacturing industry consists of a few large organizations, many of which operate under government auspices, and a great number of small and medium-sized production units. Manufacturing contributed almost 20 per cent of Austrian GDP in 2004, and employed almost 22 per cent of the working population. The principal industrial products by bulk are pig iron, crude steel, rolled steel, machinery, food products, chemical products, motor vehicles, cement, fertilizers, rayon, cotton, and woollen yarns and fabrics, and paper. Production of crude steel totalled just under 5 million tonnes in 1994.

D.

Tourism

Austria has a substantial tourist industry, owing to its wealth of cultural and recreational attractions. In 2006 almost 20.3 million tourists visited the country, spending some US$9.32 billion. Popular destinations include Vienna, Salzburg, and the Austrian Alps. Austria derives the highest proportion of its GNP, 6.3 per cent, from tourism of any of the 29 OECD member states.

E.

Energy

Austria has numerous hydroelectric installations, which together produce more than two thirds of the country’s electrical output. In 1994 Austria had an electricity-generating capacity of some 17.2 million kW, and approximately 56 billion kWh of electricity were generated in 2003. Substantial amounts of electricity were exported to other European countries.

F.

Currency and Banking

The monetary unit of Austria was formerly the schilling of 100 groschen, but in accordance with the country’s entry into the European single currency, as from January 1, 2002, Austria adopted Euro notes and coins. As at early 2008, 0.68 Euros equalled US$1. The Austrian National Bank has authority over the nation’s currency and bank credit policies. Austria has more than 1,000 commercial, savings, cooperative, and mortgage banks.

G.

Commerce and Trade

The total estimated value of imports of goods in 2004 was about US$104 billion. Construction and industrial machinery, chemicals, electrical apparatus, transport equipment, petroleum, and foodstuffs were among the chief import commodities. Austrian exports totalled about US$104 billion in the same period. The principal products exported included iron and steel, engines and engine parts, wood and timber, paper, paperboard, synthetic fibres and fabrics, electric power, machinery, embroidery, and chemicals. Austria also has an active “invisible” import/export sector, dealing with banking and other services. Germany is the largest market for and supplier to Austrian industry. Italy and the other nations of the European Union, Japan, the United States, and Switzerland are also major trade partners.

H.

Labour

About 60 per cent of the total Austrian workforce of 3,758,800 (1995) belongs to the 15 unions that make up the Austrian Trade Union Federation. Membership in unions is on a voluntary basis, but all wage earners are required by law to join their respective staff associations. These are organized on a provincial basis and represent workers on legislative matters. Women make up more than 40 per cent of the total workforce.

I.

Transport

Austria has a highly developed system of rail, air, water, and road transport. In 2005 the country had some 5,781 km (3,592 mi) of railways, about 98 per cent of which were owned by the state. As a landlocked and mountainous country, Austria depends on rail passage for a major share of its foreign trade. Motorways and roads totalled about 33,715 km (20,950 mi) in 1995. Water transport is confined largely to the Danube. The state-owned First Danube Steamship Company, the largest shipping company in Austria, provides both freight and passenger service on the river. Many international carriers serve Austrian airports, with most traffic to Schwechat, near Vienna. Austrian Airlines, the national airline, serves many European and domestic routes.

J.

Communications

Radio, television, telephone, and telegraph systems were all state monopolies until the broadcasting system was converted into a joint-stock company in December 1957. The Austrian Broadcasting Company (Österreichischer Rundfunk) provides three radio and two television services. In 1997, 6 million registered radios and 4 million television receivers were in use.

Telephone and telegraph communications are directed by the Austrian postal service. More than 3.8 million telephones are in service (1995). Over 150 daily and weekly newspapers and other periodicals are published. Daily newspaper circulation averages more than 2 million. Influential dailies include Die Presse, Der Standard (circulation 118,000), Wiener Zeitung (21,000), and Wirtschafts Blatt (47,000) published in Vienna, and the Salzburger Nachrichten, published in Salzburg.