- GDP (PPP):
- $534.0 billion
- 0.8% 5-year compound annual growth
- $59,692 per capita
- Inflation (CPI):
- Public Debt:
Austria’s economic freedom score is 71.1, making its economy the 23rd freest in the 2023 Index. Its score is 2.7 points worse than last year. Austria is ranked 16th out of 44 countries in the Europe region, and its overall score is well above the regional and world averages.
Austria’s high scores for property rights and government integrity reflect its strong rule of law and the expansion of economic freedom. Institutional strength, however, is not matched by a commitment to limited government. Expansionary public spending has generated budgetary pressure. The transparent and competitive business environment has been effective.
Austria regained full sovereignty in 1955. Former Interior Minister Karl Nehammer became chancellor in December 2021 following the resignations of Sebastian Kurz, felled by a corruption probe, and his handpicked successor Alexander Schallenberg, who held office only briefly. The ruling coalition consists of the conservative People’s Party and the Austrian Green Party. Independent President Alexander Van der Bellen won reelection in October 2022. Austria has large services and industrial sectors and a small, highly developed agricultural sector. Ongoing challenges include assimilation of migrants, strains on labor markets and public finances caused by an aging population, and reliance on Russian energy.
Rule of Law
The overall rule of law is very well respected in Austria. The country’s property rights score is above the world average; its judicial effectiveness score is above the world average; and its government integrity score is above the world average.
The top individual and corporate tax rates are, respectively, 55 percent and 25 percent. The tax burden equals 42.1 percent of GDP. Three-year government spending and budget balance averages are, respectively, 53.8 percent and –4.5 percent of GDP. Public debt equals 82.9 percent of GDP.
The overall regulatory framework is transparent and efficient, encouraging business innovation and productivity growth. There is no nationally mandated minimum wage, but the cost of fringe benefits is among the highest in the world. The most recent available inflation rate is 2.8 percent.
The trade-weighted average tariff rate (common among EU members) is 3.2 percent, and more than 600 EU-mandated nontariff measures are in force. In general, government policies do not significantly interfere with foreign investment. The relatively well-capitalized banking sector offers a wide range of financial services.