Research and Market Entry Report for Austria Krystian Raymond
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Economy“According to the International Monetary Fund, Austria is the 13th richest country in the world, with a per capita GDP of $49,255. (2013) It is ranked 10th in the world in terms of quality of life for a country. Austria is a member of the European Union and was a founding member of the Organization for Economic Cooperation and Development.[CIA13] As part of the European Union, Austria has adopted the Euro as its official currency. The exchange rate is approximately $1.50 Canadian dollars per Euro. Though the Euro has declined in strength over the past 5 years, it has begun to recover its strength since 2013 and has shown a positive trend upwards over the past year.”[Ray13] At 31.4% of exports and 42.1% of imports, Germany remains Austria’s largest trading partner by far. Other major partners include Italy, Switzerland, France and the United States, all of whom hold less than 10% each of imports and exports. [Int13] With Austria’s inclusion into the EU, the country has been able to decrease dependency upon the German economy, allowing Austria more economic independence and reducing its vulnerability to rapid market changes within Germany. Austria’s position within Europe makes it a good gateway to other markets within central and Eastern Europe. There has been a trend of positive growth in trade between Austria and its Eastern European counterparts over the past 20 years, resulting in good trade relationships with neighboring economies. Due to strong historical ties, Austria received a disproportionate amount of trade flows and immigration from Eastern European countries compared to other nations after the fall of the Soviet bloc. [Kar95] This has a positive effect on the Austrian economy as it brings skilled workers into the labour force and channels significant investment into Austria from Eastern European companies looking to gain a foothold within the Western European markets.
1990-2015 Austria’s labour force comprises of approximately 3.7 million people and exhibits low unemployment, around 4.9%. Austria experienced inflation of 2.2% in 2013, continuing a long-term trend of relatively stable growth within the 1-3% range.[Int13] Interest rates in Austria remain very low, at 0.25%, exhibiting a good atmosphere for investment. [Eco13] According to the International Monetary Fund, “Austrian banks on the whole have benefited from limited exposures to sovereign and market risks, a stable funding structure, and relatively favorable macroeconomic conditions.” (2013) The corporate tax rate in Austria is 25%, however with tax base adjustments; some financial experts estimate the actual tax burden at no more than 22%. [Dim09] These factors indicate an attractive business environment for investing companies that are considering expansion into a European market. 
“Before the 1980s, most of Austria’s major industries were under some sort of government control. Since then however, privatization has largely exploded, meaning that Austria is still a relatively young market in terms of expansions and foreign investment. Austria has strongly encouraged foreign investment since regulatory reforms in the 1990’s, meaning that businesses will not endure any significant hardships when entering the market, and in some cases may actually benefit and receive incentives for choosing Austria as a center for operations. “[Ray13] “The current coalition government of the Social Democratic Party (SPO) and People’s Party (OVP) encourages economic advancement of many forms including foreign expansion and direct investment. Austria is a founding member of the Organization for Economic Co-operation and Development and as such has a strong interest in building global business relationships.” [Ray13] Economic reforms from 2000 to 2006 further liberalized markets, encouraged privatization and lowered the corporate tax rate to 25%. [CIA13]These reforms illustrate the strength of Austria’s long-term market potential for investing companies like RONA Inc. Directory: 2013 2013 -> Annual InStructional unit plan 2013 -> The Ministry of Education and Science of Ukraine 2013 -> #1 a lifesafer of virginia inc 2013 -> Name(s): your name here team or Group #(if applicable): Professor’s name 2013 -> Alcott Local School Council (lcs) Meeting Minutes 2013 -> Table Of Contents introduction 2 2013 -> Supplemental demographic information 2013 -> 【Education&Working Experience】 Download 3.19 Mb. Share with your friends:
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