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Austria has a well-developed social market economy and a high standard of living. Until the 1980s many of Austria's largest industry firms were nationalized, however in recent years privatization has reduced state holdings to a level comparable to other European economies. Labor movements are particularly strong in Austria and have large influence on Labor politics. Germany has historically been the main trading partner of Austria, making it vulnerable to rapid changes in the German economy. Slow growth in Germany and elsewhere in the world affected Austria, slowing its growth to 0.8% in 2001. But since Austria became a member state of the European Union it has gained closer ties to other European Union economies, reducing its economic dependence on Germany. In addition, 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 aspiring economies. Therefore estimates of growth in 2006 (about 2.6%) are much more favorable than in the crippling German economy. Approximately two percent of the population lives below the poverty line. Agriculture: Austrian farms, like those of other west European mountainous countries, are small and fragmented, and production is relatively expensive. The quality of the produce is very high as strict agricultural regulations are tightly enforced. More recently, a very large proportion of Austrian agriculture has easily and naturally rolled over into bio/natural farming. Industry: Although some industries, such as several iron and steel works and chemical plants, are large industrial enterprises employing thousands of people, most industrial and commercial enterprises in Austria are relatively small on an international scale. Services: Like in other western countries, the biggest contributor to Austria's GDP is its service sector. Most notably is tourism, especially winter tourism. Foreign Trade: In 2005 total exports were valued at €94.7 billion, an increase of 5.4% compared to 2004. Imports amounted to €96.5 billion, an increase of 5.9% compared to 2004. This resulted in a slightly negative trade balance of €1.8 billion. |
Austria Information: Inside
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