AUSTRIA / SALARY

Introduction

Austria is a land-locked country that is found in the southern part of central Europe. Nine federated states border it, including Slovakia, Czech Republic, Vienna, Italy, Switzerland, Liechtenstein, Hungary, Germany, and Slovenia. The country uses the euro currency for transactions.

Austria has developed/advanced technology and a high-income economy. It's the 14th largest economy in terms of nominal GDP per capita. The guide will help you learn some of the sectors that contribute to the country's economy, level of employment, export and imports, inflation, and GDP growth.

GDP

The World Outlook Database shows that the estimated nominal GDP in 2021 is around $490 billion, and the GDP in terms of PPP is approximately $ 527 billion. Austria has the 26th largest economy for nominal GDP and the 44th largest for Purchasing power parity GDP.

The nominal GDP capital in 2021 estimates is around $ 54,820 and the GDP per capita in terms of Purchasing power parity during the same period is $ 58,966. Austria is ranked as number thirteen for nominal GDP per Capita and 18th in GDP per capita PPP.

In 2021 the service sector accounted for the highest contribution of Austria's economy with 70.3 %. That was closely followed by Industries with 24 percent and lastly Agriculture with 1.3 percent. After the year 2017, the GDP growth was slowly declining in 2018. The GDP growth was 2.4%, while in 2019, 1.6 percent. The GDP growth was worse in 2020 due to the Covid 19 pandemic, making the GDP growth estimates 6.7 percent. However, in 2021, the GDP growth may rise as it's estimated to have a GDP growth of 4.6 percent.

Economic sector

·       Agriculture sector

The agricultural sector plays a role in Austria's economy.  However, most Austrian farms are small, and the production expense is usually too high. The country has undergone various reforms since it became a member of the European Union. Austria can have enough produce which they can use. Over the years, the GDP growth of the agriculture sector has been declining. That has resulted in minimal contribution to the economy. The main agricultural products include maize, wheat, onions, wheat potatoes, barley, grapes, and apples.

·       Industry sector

Austria has large industries, companies, and commercial enterprises. The industry sectors have a massive contribution to Austria's economy as it has employed a large workforce. The primary industries contributing to Austria's high economy include machinery and equipment, motor vehicles, and chemicals.

·       Service sector

The service sector is the highest contributor to Austria's economy. Some of the service sectors include financing and consulting companies, banking, law firms, and tourism. Do you know that tourism accounts for about 10 percent of the GDP growth of the service sector? In addition to that, statistics show that Austria was the most visited country in the year 2001. The country is highly mountainous and has the largest natural land reserves in Central Europe, making it an ideal place. Vienna banks and law firms have a significant contribution to Austria's economy. They are among the largest businesses in the new EU member states.

Health care services

In Austria, some people must have health insurance cover. This mainly applies to most self-employed persons, pensioners, and people claiming unemployment benefits. The health services sector will employ many people at the end of the year 2021. Austria had approximately 61,757 nurses and 16,548 medical professionals.

In the year 2020, Austria recorded a high health expenditure. This was due to the Covid 19 pandemic. The costs incurred include purchasing protective equipment, temporary hospitals, covid 19 information spread, and testing tool kits. In some areas, the health cost was reduced after the lockdown, leading to the closure of rehabilitation homes and medical and dental care. However, Austria's health sector is stable.

Employment Sector

1.    Employment

Austria's labor force in the year 2021 shows that the country's labor force was 4,559,603. Austria's employment rate is approximately 76.2 percent.  The male dominates compared to the females. Most people are employed by the service sector followed by the industry sector and finally the agricultural sector.

2.    Unemployment

In August 2020, Austria's unemployment rate was 5 %. The highest unemployment number is the youths who are mainly of ages between fifteen to twenty-four years old. Around 10.3 percent of the youths are not employed.

Exports and Imports

Austria's largest importer and exporter are Germany; hence any change in Germany's economy affects Austria's economy. However, that is not the situation currently as Austria is now a member of the European Union, thus making closer ties with other European Unions.

Exports

In the year 2017, Austria's exports were approximately $ 156.7 billion. The main products exported in Austria include motor vehicles, machinery and equipment, chemicals, iron and steel, manufactured goods, and foodstuffs. The country's leading export partner is Germany, with 29.4 percent. Other export partners include Italy, Switzerland, United States, France, and Slovakia.

Imports

Austria's imports in the year 2017 were $ 158.1 billion. The main import partners of Austria include Switzerland, Czech Republic, Netherlands, Italy, and Germany.  Austria imports some goods from natural gas, Foodstuff, Machinery and equipment, metal goods, oil and oil products, and natural gas.

Inflation

The inflation CPI of Austria has been decreasing over the years. According to the world economic database for the years 2020 and 2021 were 1.5 percent, and 1.2 percent. The inflation CPI shows fixed expenses such as living costs and rents and provides data of wages and salaries negotiations.

Conclusion

Austria has a developed social market economy. The country has a vast economy, thus being ranked as number fourteen globally in GDP per capita. The country's GDP growth is mainly contributed by the service sector, employing the highest labor force. Exports are also a primary indicator of the country's economy. Austria's main exports include iron and steel, machinery and equipment, foodstuffs, and chemicals. Among the nine federated states, Vienna is ranked number five largest in the European Union. The main industries behind Austria’s massive economy include tourism, construction, lumber and paper, electronics, vehicles and parts, food, and metals.