About AUSTRIA
Austria offshore banks



Once the center of power for the large Austro-Hungarian empire, Austria was reduced to a small republic after its defeat in World War I. After the annexation to Nazi Germany in 1938 and subsequent occupation by the victorious Allied powers, Austria's 1955 State Treaty declared the country "permanently neutral" as a condition of the Soviet military withdrawal. The Soviet collapse relieved the external pressure to remain unaligned, but neutrality had evolved into a part of Austrian cultural identity, which has led to an ongoing public debate over whether Vienna legitimately can remain outside of European security structures. A wealthy country, Austria joined the European Union in 1995 and, like many EU members, is adjusting to the new European currency and struggling with high unemployment.

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. Through privatization efforts, the 1996-98 budget consolidation programs, and austerity measures, Austria has brought its total public sector deficit down to 2.1% of GDP in 1999 and public debt - at 63.1% of GDP in 1998 - more or less in line with the 60% of GDP required by the EMU's Maastricht criteria. Cuts mainly have affected the civil service and Austria's generous social benefit system, the two major causes of the government's deficit. To meet increased competition from both EU and Central European countries, Austria will need to emphasize knowledge-based sectors of the economy and deregulate the service sector. Growth, which slowed to 2.0% in 1999, probably will rebound to 2.8% in both 2000 and 2001.

GDP - (ppp) - $325 billion (2008 est.)
GDP - per capita - $39,600 (2008 est.)

Currency:
euros (EUR) per US dollar - 0.6734 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)