Austria: A Stable, Safe Country

Austria has not been spared by the economic crisis. The effects are clearly noticeable, although to a lesser degree than in most other EU member states. After the bitter year of 2009, a silver lining now finally seems to appear in the economic skies. Economic researchers agree that the stimulus packages that were implemented at both a national and international level have averted even more drastic consequences of the crisis, and that they play an instrumental role in getting the economic motor up and running again. For this purpose, Austria has compiled the (according to the European Commission) second-largest package of measures within the EU for both 2009 and 2010. While the OECD is prognosticating minor economic growth for 2010 and a more significant growth of 2.2 percent for 2011, the labour market is not expected to recover before 2011. Despite a tense economic situation, Austria’s performance regarding economic growth and unemployment rate is one of the best in comparison with the other EU countries.

While this is no reason to celebrate, it still is an important reassurance that our country is among the most stable in the European economic area. Even the real estate market, very volatile all over the world, seems to follow different rules in Austria: The Viennese office market might not be skyrocketing in years of boom, but there are no massive slumps during economically weak periods either. The numbers are proving that rents have dropped only slightly, vacancy rates are at an acceptable level, and the quite remarkable rental occupancy rate in 2009 does not show the signs of paralysis that have gripped some other industries. This assessment can - with slight variations - also be applied to the housing market. Even most of the planned hotel construction projects have come out of the project pipeline as intended. Detailed facts and numbers as well as the opinions of numerous industry experts can be found in several articles in this issue of BUSINESS LOCATION AUSTRIA.

Even in times of crisis, Vienna lived up to its reputation as an economic hub for Central, Eastern and South-Eastern Europe. In the first half of 2009, 54 international companies opened a branch in Vienna, compared to 45 over the same period the previous year. An increase in headquarter establishments can be reported as well. Targeted initiatives in the field of research and development as well as versatile subsidy programmes will contribute to strengthening Austria as a business location in the future. In this context, BUSINESS LOCATION AUSTRIA presents you a current overview of the Austrian subsidy landscape.