Austria

D

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. A significant proportion of its manufacturing income comes from heavy industries, such as the production of iron and steel, and machinery. Medium- and small-scale plants produce machines, instruments, textiles, chemicals, and ceramics. About 26 percent of the labor force is employed in the manufacturing sector. The principal manufactured products in the early 2000s were metals and metal products; machinery, including automobile engines and transmission and telecommunications equipment; food products; wood and paper products; and chemicals.

E

Tourism

With the famous Alps and a wealth of cultural and recreational facilities, Austria is one of the world’s top tourist destinations. A premier winter sports area, the country also has summer music festivals (including the celebrated Salzburg Festival), lake resorts (especially in Kärnten), medicinal spas, and many museums and other attractions. In 2006 some 20 million people from other countries visited Austria. More than half of these tourists were from Germany, with the rest coming primarily from Netherlands, Italy, the United Kingdom, Switzerland, and the United States. An important part of the Austrian national economy, tourists spent $16.6 billion in the country in 2006.

F

Energy

Austria has numerous hydroelectric installations, which together produced 59 percent of the country’s electrical output in 2003. Austria generated a total of 55.7 billion kilowatt-hours of electricity. Substantial amounts of hydroelectricity were exported to other European countries, but Austria was forced to import natural gas from eastern Europe, as well as crude petroleum, to meet its energy needs.

G

Currency and Banking

The monetary unit of Austria is the single currency of the European Union (EU), the euro (0.80 euros equal U.S. $1; 2006 average). Austria is among 12 EU member states to adopt the euro. The euro was introduced on January 1, 1999, for electronic transfers and accounting purposes only, and Austria’s national currency, the schilling, was used for other purposes. On January 1, 2002, euro-denominated coins and bills went into circulation, and the schilling ceased to be legal tender.

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As a participant in the single currency, Austria must follow economic policies established by the European Central Bank (ECB). The ECB is located in Frankfurt, Germany, and is responsible for all EU monetary policies, which include setting interest rates and regulating the money supply. On January 1, 1999, control over Austrian monetary policy was transferred from the central bank of Austria, the Austrian National Bank, to the ECB. After the transfer, the Austrian National Bank joined the national banks of the other EU countries that adopted the euro as part of the European System of Central Banks (ESCB). Austria has more than 1,100 commercial, savings, cooperative, and mortgage banks.

H

Commerce and Trade

Austria joined the European Union in 1995 and today carries out much of its trade with other EU members. Germany is the largest market for and supplier to Austrian industry. Other leading markets for exports include Italy, Switzerland, Hungary, and the United Kingdom. Leading sources for imports (in addition to Germany) are Italy, the United States, France, and Switzerland.

The value of Austria’s imports in 2004 was $104.5 billion. Industrial and general machinery, transportation equipment, clothing and accessories, metals, food products, metal manufactures, textiles, office machines, and petroleum and petroleum products were among the chief import commodities. Austrian exports totaled $103.7 billion in the same period. The principal products exported included specialized and general industrial machinery, metal manufactures, electrical machinery, transportation equipment, paper and paper manufactures, iron and steel, textiles, engines, and telecommunications and sound equipment.

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