Research Report of Austria

Research Report of Austria

Introduction

According to a World Bank report, Austria is currently a developed economy. This research will focus on the country’s economy. The country, located in the southern part of Central Europe, presently has nine federal states. Austria is one of the most developed countries in Central Europe.  The estimated population of the country as of the year 2020 is 25 million. Austria is ranked as one of the countries where the dependency level is very low. Austria ranks as one of the most exciting countries in Europe (World Bank, 2020).  Austria has remained an attractive country for investors. The stable political environment, as well as the presence of a booming economy, has attracted investors. Studies have shown that the tourism sector is one of the growing segments of the country’s economy.

Austria’s Current GDP and Per Capita Income

Austria’s GDP, as of the year 2018, stood at 50250 US dollars. In the same year, the per capita GDP was equivalent to 398 percent of the prevailing world’s average. Per capita GDP refers to the country’s income per head. However, the GDP grew by 1.6% in 2019 compared to the previous year. The 2019 GDP was 446,145 million US dollars, which is a massive growth.

On the other hand, the per capita GDP as of 2019 was $50,362. Compared to the 2018 per capita GDP, the 2019 one has surpassed the mark by $982. Austria’s booming economy is linked to intensive exportation activities. The country has enjoyed a positive balance of trade in the past few years. Also, the country has a strong banking sector. Notably, the banking sector boasts of a strong asset base. Ranking developed countries based on Per Capita GDP shows that Austria is well-positioned. Studies show that the standards of living as in 2019 are very high.

The 2018-2019 GDPs and growth rates

Austria’s Annual Growth rate Since 2010

The country’s booming economy has ensured that the GDP remains continuously positive. Austria enjoyed an annual growth rate of 1.2% from December 2010 to December 2019. The country remains among the few who went through massive GDP growth characterized by massive investment in industrialization as well as the expansion of the tourism sector (World Bank, 2020).  However, the country’s GDP has had its ups and downs. The country faced a massive drop in GDP in the year 2012. Austria’s GDP dropped from 2.9% to 0.7%, which indicates that there was a crisis. Notably, the unstable drop in GDP between 2010 and 2015 is linked to the 2009 economic crisis. However, the country experienced a recovery in the year 2016. Since then, the country’s GDP has stabilized, and this can be noted from its booming economy.

Inflation

Austria’s inflation is based upon the consumer price index. The country’s financial sector has been measuring inflation every month. Currently, the inflation rate is 2.09%. The rate has been declining in the year 2019-2020, according to quarterly reports. Notably, the rate hit a record high in January 2019, where the prevailing rate was 1.83% (World Bank, 2020). The country’s rate of inflation from 2010 to 2020 was 1.5%. The rate of inflation was lowest in 2010 where it hit 0.41%. However, the country experienced the worst inflation in the year 2012, where the CPI was 3.54. The country’s inflation has since dropped, and it is expected to maintain the same trend in the coming years.

Unemployment

Austria is one of the countries in Europe where the rate of unemployment is very low. The prevailing rate of unemployment in the country is 1.9%. The rate of unemployment in the country is comparatively low in the European Union. Notably, in the Eurozone, the standard rate is 4.9%, which shows that the country’s economy is performing well. The low unemployment rate is linked to qualified as well as a motivated pool of employees. Most of the investors in the country highly value the professional skills the citizens possess. Also, the firms in the country often find the right employees in all the sectors.

Since 2010, the rate of unemployment in Austria has been relatively low. Most of the country’s citizens, whether skilled, semi-skilled, or unskilled, are employed. The prevailing unemployment rate in the country, as in 2020 is 8.11%. The rate is very low when compared to other European countries. Unemployment rates have declined because the country’s economy is performing well.

Conclusion

Austria, which is located within the Eurozone, has enjoyed a massive economic growth since 2010. The growth is characterized by a strong GDP as well as per capita income. Over the past few years, the country has enjoyed a low inflation rate. Austria enjoys a very low rate of inflation, which is measured using the consumer price index. Also, the country’s rate of unemployment is very low. The country’s population is composed of highly skilled employees. The formal and informal sector has a good supply of skilled workforce. It is expected that the country’s economy will further improve because of the current intensive investment in technological means of production. In the next five years, the country will be an economic giant in the Eurozone.

References

World Bank. (2020). World Bank Open Data | Data. Retrieved 21 March 2020, from https://data.worldbank.org/