Economy

Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. Membership in the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to EU aspirant economies. To meet increased competition from both EU and Central European countries, Austria will need to emphasize knowledge-based sectors of the economy, continue to deregulate the service sector, and lower its tax burden. A key issue is the encouragement of much greater participation in the labor market by its ageing population.

Agriculture

Only about 19% of Austria's surface is covered by arable land and 26% by grassland. Modern techniques of food production have led to a high level of self-sufficiency. However, as in most industrialized countries, the agricultural surplus remains to be of major concern.

Services

As a gateway to all parts of Europe and the rest of the world Austria has developed a widely diversified and efficient service sector. There are many small businesses, particularly in retail trade: 22% of all trading firms are one-person businesses, 70% employ up to 10 people, 7% up to 50, and only 1% have more than 50 employees. Austria, and especially Vienna, enjoys an excellent reputation as an East-West trading center, thanks to the expertise accumulated over the years. The experience of trading companies in barter-trade and complex financing arrangements are essential to the success of business transactions, even with today's open markets in Eastern Europe.

Industry

The Austrian industry consists mostly of small and medium sized enterprises. Roughly 85% of all companies have less than 100 employees. Another 12% employ up to 500 people, 1.6% up to 1.000, and only 1% have 1.000 or more people on the payroll. Production gains have been achieved through labor cost saving machinery and equipment.

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