Although agriculture's share of the economy declined steadily
after World War II, agriculture continues to represent an
important element of the economy because of its social and
political significance. The Chamber of Agriculture remains on an
equal level with the chambers of commerce and labor, although its
members produce only a fraction of the GDP that industrial and
commercial workers produce.
In Austria, as in most other Western countries, the
government has played an important role in agriculture since the
end of War World II. The government has concentrated on
mitigating social, regional, economic, and even environmental
consequences of the sector's decline, as well as delaying the
decline itself.
Agricultural policy has been carried out with different
objectives and with different laws and policies depending on the
times. In the early postwar years, the most important objectives
were survival and self-sufficiency. As a poor country, Austria
needed to be able to feed itself if its population was to
survive.
By the 1950s, however, the policy was changing to a more
global perspective, while keeping intact the traditional form
economy. The government wanted to protect domestic production,
stabilize agricultural markets, protect farmers' incomes, and
improve the sector's ability to compete in Austria and abroad.
Increasingly, the government began to believe in the importance
of maintaining rural society as an objective in its own right,
for social reasons, and to protect the environment and encourage
tourism. Because of these aims, agricultural policy, more than
any other economic policy, reflects a mixture of economic and
noneconomic objectives and concerns. The principal aim, however,
is to preserve the existing number of farms as much as possible.
Within the structure of the social partnership, various
organizations work to maintain farm incomes and thus farm
existence, among them the Grain Board, the Dairy Board, and the
Livestock and Meat Commission. These organizations set basic
support prices, taking into account domestic costs and local
supply and demand, with only weak linkages to world market
prices.
The boards and commission use a variety of measures to
achieve their broad purposes. Among these measures are import
restrictions, such as border controls and entry controls--some of
which may be bilaterally negotiated--and variable import duties.
If import restrictions are not sufficient to maintain prices
because of excess production, the surplus is exported at
subsidized prices (with the subsidies usually coming from federal
or provincial authorities). Authorities also apply production
controls, such as sales quotas or limits, on the size and density
of livestock holdings. Quotas exist for many different products,
with the quotas usually fixed on the basis of past production.
Price and quality controls and limits also exist, especially with
respect to different prices for different grades of wheat or
milk. The government can also pay direct income supplements, but
these payments are generally restricted to certain mountain
farming zones and other equally disadvantaged areas. Subsidies
are mainly paid by the federal government but may in some
instances be paid by provincial governments.
Because of the complex system of price supports and market
access limitations, the exact share of subsidy costs to the
government and to consumers is virtually impossible to calculate.
Experts estimate that the total cost to the federal and other
governments for agricultural and forestry support during the late
1980s was approximately S16 billion a year, a level that would
have been roughly at the same level as that of many other
Organisation for Economic Co-operation and Development (OECD)
governments but slightly higher than the EC average.
The economic research institute Österreichisches Institut für
Wirtschaftsforschung (WIFO) estimated after a major 1989 study
that about 71 percent of the cost of agricultural support was
borne by consumers in the form of higher prices, with the
taxpayers carrying the remaining 29 percent through such
different programs as direct and indirect federal and provincial
subsidies or various kinds of market regulation.
Austria's decision to enter the EU will have certain effects
on its agriculture and forestry. Support prices in Austria are
higher than those set under the EU's Common Agricultural Policy
(CAP), although the two systems are in many ways similar.
Austrian government-borne subsidy costs are at about the same
level as those in the EU, but consumer-borne subsidy costs are
higher, so food prices in Austria average about 30 percent higher
than those in the EU. Full integration into the EU will thus
compel a number of adjustments in Austria. These adjustments may
be even more severe if they become effective at the same time
that some East European countries with lower production costs
enter the EU. Much depends, of course, on any reforms that may
take place in the CAP.
Background | | 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. Following annexation by Nazi Germany in 1938 and subsequent occupation by the victorious Allies in 1945, Austria's status remained unclear for a decade. A State Treaty signed in 1955 ended the occupation, recognized Austria's independence, and forbade unification with Germany. A constitutional law that same year declared the country's "perpetual neutrality" as a condition for Soviet military withdrawal. The Soviet Union's collapse in 1991 and Austria's entry into the European Union in 1995 have altered the meaning of this neutrality. A prosperous, democratic country, Austria entered the EU Economic and Monetary Union in 1999. In January 2009, Austria assumed a nonpermanent seat on the UN Security Council for the 2009-10 term.
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Location | | Central Europe, north of Italy and Slovenia
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Area(sq km) | | total: 83,871 sq km land: 82,445 sq km water: 1,426 sq km
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Geographic coordinates | | 47 20 N, 13 20 E
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Land boundaries(km) | | total: 2,562 km border countries: Czech Republic 362 km, Germany 784 km, Hungary 366 km, Italy 430 km, Liechtenstein 35 km, Slovakia 91 km, Slovenia 330 km, Switzerland 164 km
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Coastline(km) | | 0 km (landlocked)
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Climate | | temperate; continental, cloudy; cold winters with frequent rain and some snow in lowlands and snow in mountains; moderate summers with occasional showers
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Elevation extremes(m) | | lowest point: Neusiedler See 115 m highest point: Grossglockner 3,798 m
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Natural resources | | oil, coal, lignite, timber, iron ore, copper, zinc, antimony, magnesite, tungsten, graphite, salt, hydropower
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Land use(%) | | arable land: 16.59% permanent crops: 0.85% other: 82.56% (2005)
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Irrigated land(sq km) | | 40 sq km (2003)
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Total renewable water resources(cu km) | | 84 cu km (2005)
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Freshwater withdrawal (domestic/industrial/agricultural) | | total: 3.67 cu km/yr (35%/64%/1%) per capita: 448 cu m/yr (1999)
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Natural hazards | | landslides; avalanches; earthquakes
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Environment - current issues | | some forest degradation caused by air and soil pollution; soil pollution results from the use of agricultural chemicals; air pollution results from emissions by coal- and oil-fired power stations and industrial plants and from trucks transiting Austria between northern and southern Europe
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Environment - international agreements | | party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulphur 94, Air Pollution-Volatile Organic Compounds, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling signed, but not ratified: none of the selected agreements
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Geography - note | | landlocked; strategic location at the crossroads of central Europe with many easily traversable Alpine passes and valleys; major river is the Danube; population is concentrated on eastern lowlands because of steep slopes, poor soils, and low temperatures elsewhere
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Population | | 8,210,281 (July 2009 est.)
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Age structure(%) | | 0-14 years: 14.5% (male 609,748/female 581,144) 15-64 years: 67.5% (male 2,785,091/female 2,756,402) 65 years and over: 18% (male 612,613/female 865,283) (2009 est.)
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Median age(years) | | total: 42.2 years male: 41.1 years female: 43.2 years (2009 est.)
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Population growth rate(%) | | 0.052% (2009 est.)
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Birth rate(births/1,000 population) | | 8.65 births/1,000 population (2009 est.)
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Death rate(deaths/1,000 population) | | 9.98 deaths/1,000 population (July 2009 est.)
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Net migration rate(migrant(s)/1,000 population) | | 1.85 migrant(s)/1,000 population (2009 est.)
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Urbanization(%) | | urban population: 67% of total population (2008) rate of urbanization: 0.7% annual rate of change (2005-10 est.)
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Sex ratio(male(s)/female) | | at birth: 1.05 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 1.01 male(s)/female 65 years and over: 0.71 male(s)/female total population: 0.95 male(s)/female (2009 est.)
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Infant mortality rate(deaths/1,000 live births) | | total: 4.42 deaths/1,000 live births male: 5.39 deaths/1,000 live births female: 3.41 deaths/1,000 live births (2009 est.)
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Life expectancy at birth(years) | | total population: 79.5 years male: 76.6 years female: 82.56 years (2009 est.)
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Total fertility rate(children born/woman) | | 1.39 children born/woman (2009 est.)
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Nationality | | noun: Austrian(s) adjective: Austrian
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Ethnic groups(%) | | Austrians 91.1%, former Yugoslavs 4% (includes Croatians, Slovenes, Serbs, and Bosniaks), Turks 1.6%, German 0.9%, other or unspecified 2.4% (2001 census)
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Religions(%) | | Roman Catholic 73.6%, Protestant 4.7%, Muslim 4.2%, other 3.5%, unspecified 2%, none 12% (2001 census)
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Languages(%) | | German (official nationwide) 88.6%, Turkish 2.3%, Serbian 2.2%, Croatian (official in Burgenland) 1.6%, other (includes Slovene, official in Carinthia, and Hungarian, official in Burgenland) 5.3% (2001 census)
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Country name | | conventional long form: Republic of Austria conventional short form: Austria local long form: Republik Oesterreich local short form: Oesterreich
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Government type | | federal republic
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Capital | | name: Vienna geographic coordinates: 48 12 N, 16 22 E time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time) daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
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Administrative divisions | | 9 states (Bundeslaender, singular - Bundesland); Burgenland, Kaernten (Carinthia), Niederoesterreich (Lower Austria), Oberoesterreich (Upper Austria), Salzburg, Steiermark (Styria), Tirol (Tyrol), Vorarlberg, Wien (Vienna)
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Constitution | | 1920; revised 1929; reinstated 1 May 1945; note - during the period 1 May 1934-1 May 1945 there was a fascist (corporative) constitution in place
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Legal system | | civil law system with Roman law origin; judicial review of legislative acts by the Constitutional Court; separate administrative and civil/penal supreme courts; accepts compulsory ICJ jurisdiction
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Suffrage | | 16 years of age; universal; note - reduced from 18 years of age in 2007
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Executive branch | | chief of state: President Heinz FISCHER (SPOe) (since 8 July 2004) head of government: Chancellor Werner FAYMANN (SPOe) (since 2 December 2008); Vice Chancellor Josef PROELL (OeVP) (since 2 December 2008) cabinet: Council of Ministers chosen by the president on the advice of the chancellor elections: president elected by direct popular vote for a six-year term (eligible for a second term); presidential election last held 25 April 2004 (next to be held in April 2010); chancellor formally chosen by the president but determined by the coalition parties forming a parliamentary majority; vice chancellor chosen by the president on the advice of the chancellor election results: Heinz FISCHER elected president; percent of vote - Heinz FISCHER 52.4%, Benita FERRERO-WALDNER 47.6% note: government coalition - SPOe and OeVP
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Legislative branch | | bicameral Federal Assembly or Bundesversammlung consists of Federal Council or Bundesrat (62 seats; members chosen by state parliaments with each state receiving 3 to 12 members in proportion to its population; members serve five- or six-year terms) and the National Council or Nationalrat (183 seats; members elected by direct popular vote to serve five-year terms) elections: National Council - last held 28 September 2008 (next to be held by September 2013) election results: National Council - percent of vote by party - SPOe 29.3%, OeVP 26%, FPOe 17.5%, BZOe 10.7%, Greens 10.4%, other 6.1%; seats by party - SPOe 57, OeVP 51, FPOe 34, BZOe 21, Greens 20
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Judicial branch | | Supreme Judicial Court or Oberster Gerichtshof; Administrative Court or Verwaltungsgerichtshof; Constitutional Court or Verfassungsgerichtshof
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Political pressure groups and leaders | | Austrian Trade Union Federation or OeGB (nominally independent but primarily Social Democratic); Federal Economic Chamber; OeVP-oriented Association of Austrian Industrialists or IV; Roman Catholic Church, including its chief lay organization, Catholic Action other: three composite leagues of the Austrian People's Party or OeVP representing business, labor, farmers, and other nongovernment organizations in the areas of environment and human rights
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International organization participation | | ACCT (observer), ADB (nonregional member), AfDB (nonregional member), Australia Group, BIS, BSEC (observer), CE, CEI, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, G-9, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURCAT, MINURSO, NEA, NSG, OAS (observer), OECD, OIF (observer), OPCW, OSCE, Paris Club, PCA, PFP, Schengen Convention, SECI (observer), UN, UN Security Council (temporary), UNCTAD, UNDOF, UNESCO, UNFICYP, UNHCR, UNIDO, UNTSO, UNWTO, UPU, WCL, WCO, WEU (observer), WFTU, WHO, WIPO, WMO, WTO, ZC
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Flag description | | three equal horizontal bands of red (top), white, and red; the flag design is certainly one of the oldest - if not the oldest - national banners in the world; according to tradition, following a fierce battle in the Third Crusade, Duke Leopold V of Austria's white tunic became completely blood-spattered; upon removal of his wide belt or sash, a white band was revealed; the red-white-red color combination was subsequently adopted as his banner
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Economy - overview | | Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the global economic downturn in 2008 led to a recession that is likely to persist through 2009. The government's stabilization measures could increase the budget deficit to about 2.8% of GDP in 2009 and above 3% in 2010, from about 0.6% in 2008. The Austrian economy has benefited greatly in the past from strong commercial relations, especially in the banking and insurance sectors, with central, eastern, and southeastern Europe, but these sectors have been vulnerable to recent international financial instabilities, and some of Austria's largest banks have required government support. Even after the global economic outlook improves, Austria will need to continue restructuring, emphasizing knowledge-based sectors of the economy, and encouraging greater labor flexibility and greater labor participation to offset its aging population and exceedingly low fertility rate.
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GDP (purchasing power parity) | | $331.2 billion (2008 est.) $324.7 billion (2007 est.) $313.7 billion (2006 est.) note: data are in 2008 US dollars
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GDP (official exchange rate) | | $414.8 billion (2008 est.)
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GDP - real growth rate(%) | | 2% (2008 est.) 3.5% (2007 est.) 3.5% (2006 est.)
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GDP - per capita (PPP) | | $40,400 (2008 est.) $39,600 (2007 est.) $38,300 (2006 est.) note: data are in 2008 US dollars
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GDP - composition by sector(%) | | agriculture: 1.9% industry: 30.7% services: 67.4% (2008 est.)
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Labor force | | 3.633 million (2008 est.)
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Labor force - by occupation(%) | | agriculture: 5.5% industry: 27.5% services: 67% (2005 est.)
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Unemployment rate(%) | | 3.9% (2008 est.) 4.4% (2007 est.)
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Population below poverty line(%) | | 5.9% (2004)
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Household income or consumption by percentage share(%) | | lowest 10%: 3.3% highest 10%: 22.5% (2004)
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Distribution of family income - Gini index | | 26 (2007) 31 (1995)
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Investment (gross fixed)(% of GDP) | | 22.4% of GDP (2008 est.)
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Budget | | revenues: $196.4 billion expenditures: $200.7 billion (2008 est.)
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Inflation rate (consumer prices)(%) | | 3.2% (2008 est.) 2.2% (2007 est.)
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Stock of domestic credit | | $606.2 billion (31 December 2008) $504.8 billion (31 December 2007)
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Market value of publicly traded shares | | $NA (31 December 2008) $228.7 billion (31 December 2007) $191.3 billion (31 December 2006)
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Public debt(% of GDP) | | 62.6% of GDP (2008 est.) 64.2% of GDP (2004 est.)
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Agriculture - products | | grains, potatoes, sugar beets, wine, fruit; dairy products, cattle, pigs, poultry; lumber
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Industries | | construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood processing, paper and paperboard, communications equipment, tourism
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Industrial production growth rate(%) | | 2.4% (2008 est.)
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Current account balance | | $14.27 billion (2008 est.) $12.03 billion (2007 est.)
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Exports | | $179.1 billion (2008 est.) $162.1 billion (2007 est.)
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Exports - commodities(%) | | machinery and equipment, motor vehicles and parts, paper and paperboard, metal goods, chemicals, iron and steel, textiles, foodstuffs
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Exports - partners(%) | | Germany 29.5%, Italy 8.6%, US 4.3%, Switzerland 4.2% (2008)
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Imports | | $179.2 billion (2008 est.) $160.3 billion (2007 est.)
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Imports - commodities(%) | | machinery and equipment, motor vehicles, chemicals, metal goods, oil and oil products; foodstuffs
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Imports - partners(%) | | Germany 44.5%, Italy 7.1%, Switzerland 5.2%, Netherlands 4.1% (2008)
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Reserves of foreign exchange and gold | | $16.7 billion (31 December 2008 est.) $18.22 billion (31 December 2007 est.)
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Debt - external | | $832.8 billion (31 December 2008) $801.4 billion (31 December 2007)
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Stock of direct foreign investment - at home | | $261.9 billion (31 December 2008 est.) $247.9 billion (31 December 2007 est.)
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Stock of direct foreign investment - abroad | | $270 billion (31 December 2008 est.) $240.9 billion (31 December 2007 est.)
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Exchange rates | | euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)
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Currency (code) | | euro (EUR)
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Telephones - main lines in use | | 3.285 million (2008)
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Telephones - mobile cellular | | 10.816 million (2008)
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Telephone system | | general assessment: highly developed and efficient domestic: fixed-line subscribership has been in decline since the mid-1990s with mobile-cellular subscribership eclipsing it by the late 1990s; the fiber-optic net is very extensive; all telephone applications and Internet services are available international: country code - 43; satellite earth stations - 15; in addition, there are about 600 VSATs (very small aperture terminals) (2007)
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Internet country code | | .at
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Internet users | | 5.937 million (2008)
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Airports | | 55 (2009)
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Pipelines(km) | | gas 2,721 km; oil 663 km; refined products 157 km (2008)
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Roadways(km) | | total: 107,262 km paved: 107,262 km (includes 1,677 km of expressways) (2006)
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Ports and terminals | | Enns, Krems, Linz, Vienna
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Military branches | | Land Forces (KdoLdSK), Air Forces (KdoLuSK)
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Military service age and obligation(years of age) | | 18-35 years of age for compulsory military service; 16 years of age for male or female voluntary service; service obligation 6 months of training, followed by an 8-year reserve obligation; conscripts cannot be deployed in military operations outside Austria (2009)
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Manpower available for military service | | males age 16-49: 1,986,411 females age 16-49: 1,944,834 (2008 est.)
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Manpower fit for military service | | males age 16-49: 1,607,456 females age 16-49: 1,576,335 (2009 est.)
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Manpower reaching militarily significant age annually | | male: 50,540 female: 48,042 (2009 est.)
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Military expenditures(% of GDP) | | 0.9% of GDP (2005 est.)
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Disputes - international | | while threats of international legal action never materialized in 2007, 915,220 Austrians, with the support of the newly elected Freedom Party, signed a petition in January 2008, demanding that Austria block the Czech Republic's accession to the EU unless Prague closed its nuclear power plant in Temelin, bordering Austria
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Electricity - production(kWh) | | 58.64 billion kWh (2007 est.)
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Electricity - production by source(%) | | fossil fuel: 29.3% hydro: 67.2% nuclear: 0% other: 3.5% (2001)
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Electricity - consumption(kWh) | | 61.89 billion kWh (2007 est.)
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Electricity - exports(kWh) | | 14.93 billion kWh (2008 est.)
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Electricity - imports(kWh) | | 19.8 billion kWh (2008 est.)
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Oil - production(bbl/day) | | 24,850 bbl/day (2008 est.)
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Oil - consumption(bbl/day) | | 285,400 bbl/day (2008 est.)
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Oil - exports(bbl/day) | | 45,580 bbl/day (2008 est.)
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Oil - imports(bbl/day) | | 305,000 bbl/day (2008 est.)
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Economic aid - donor | | ODA, $1.498 billion (2006)
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Oil - proved reserves(bbl) | | 50 million bbl (1 January 2009 est.)
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Natural gas - production(cu m) | | 1.532 billion cu m (2008 est.)
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Natural gas - consumption(cu m) | | 8.65 billion cu m (2008 est.)
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Natural gas - exports(cu m) | | 2.788 billion cu m (2008)
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Natural gas - proved reserves(cu m) | | 16.14 billion cu m (1 January 2009 est.)
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HIV/AIDS - adult prevalence rate(%) | | 0.2% (2007 est.)
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HIV/AIDS - people living with HIV/AIDS | | 9,800 (2007 est.)
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HIV/AIDS - deaths | | fewer than 100 (2003 est.)
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Literacy(%) | | definition: age 15 and over can read and write total population: 98% male: NA female: NA
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School life expectancy (primary to tertiary education)(years) | | total: 15 years male: 15 years female: 16 years (2006)
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Education expenditures(% of GDP) | | 5.4% of GDP (2005)
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