Austria

How is Austria’s economy structured?

Although many people primarily associate Austria with tourism, the country is in fact an industrial and export-oriented economy. Austria’s business landscape is characterized by innovative small and medium-sized enterprises. The most important industrial sectors include chemical and automotive production, mechanical engineering, electronics, life sciences and environmental technology. In addition, the wood, paper and food industries also play an important role.

What business opportunities does Austria offer?

Austria offers excellent business opportunities for the Bavarian economy. As an export-oriented economy with a small domestic market, Austria has a strong interest in economic exchange with Bavaria. Favorable financing conditions and increasing sales expectations indicate a positive development in equipment investments.

Geographic, linguistic and cultural proximity strongly facilitate bilateral trade and economic relations between Austria and the State of Bavaria. For companies in both neighboring countries, bilateral trade represents a relatively easy way to expand their domestic markets. In addition, the close geographic proximity makes maintaining customer relationships particularly convenient.

What are the economic relations with Bavaria and Germany?

Bavaria and Austria have maintained extremely friendly relations for many years. Similar lifestyles and shared linguistic roots are connecting factors that facilitate entry into the neighboring market.
Within Germany, Bavaria is by far Austria’s most important economic partner. With around one quarter of Bavaria’s state border adjoining Austria, the geographic situation is particularly favorable. Austria’s imports from Bavaria include motor vehicles and vehicle parts, machinery, iron and steel products, as well as food industry products.
Austria is also an important electricity trading partner for Bavaria and plays a significant role in Bavaria’s hydrogen alliance, particularly through the participation of the Austrian energy company Verbund. Both countries are thus pioneers in innovative hydrogen technologies and cross-border cooperation in the development of affordable green hydrogen.
The joint development of innovative technologies and cross-border infrastructure projects strengthens the competitiveness of both economic locations and creates additional growth opportunities for companies.