AUSTRIA S OPPORTUNITIES

Transcription

1 AUSTRIA S OPPORTUNITIES IN THE ARKETS WORLD M

2 Dear teacher, Dear students, In recent years, Austrian exports have become an unparalleled success story. The key factors for success are innovative entrepreneurs and employees who see globalisation as an opportunity and challenge. The foundations for this are the qualifications acquired by young people during their education or training. This is because it is our present-day students who, in the foreseeable future, will be decisive for the success of Austrian companies in the world markets and will therefore secure our level of prosperity, business location and workplaces. We hope you have a great time and much success when dealing with the exciting and future-oriented topic Austria s Opportunities in the World Markets. Dr. Reinhold Mitterlehner Federal Minister of Economy, Family and Youth Dr. Christoph Leitl President of the Austrian Federal Economic Chamber Owner and publisher: Austrian Museum for Social and Economic Affairs Vogelsanggasse 36, A 1050 Vienna Tel.: +43 (0) , fax: +43 (0) wirtschaftsmuseum@oegwm.ac.at, ISBN, 13: Commissioned by the Austrian Federal Economic Chamber Educational Policy Department, Dr. Michael Landertshammer, Wiedner Hauptstraße 63, A 1045 Vienna Tel.: +43 (0) , callcenter@wko.at, Producer: agensketterl Druckerei GmbH, Kreuzbrunn 19, A-3001 Mauerbach

3 Austria s Opportunities in the World Markets 1 THE PRINCIPLES OF AUSTRIAN ECONOMIC POLICY The magic polygon Population Social partners WKO, BAK, ÖGB, LK Foreign trade balance Quality of life Environment Federal Government Equitable distribution of income and wealth International organisations: OECD, IMF, IBRD, GATT, WTO; international treaties Economic growth Companies High employment level Monetary stability Oesterre ichis Nationalb che ank European Central Bank BAK Austrian Federal Chamber of Labour GATT General Agreement on Tariffs and Trade OECD Organisation for Economic Co-operation and Development ÖGB Austrian Trade Union Federation IBRD International Bank for Reconstruction and Development WKO Austrian Federal Economic Chamber IMF International Monetary Fund WTO World Trade Organization LK Austrian Chamber of Agriculture Every national economy pursues different key economic policy objectives. Foreign trade balance means that payments for imports are covered over a longer period by revenues from exports.

4 Austria s Opportunities in the World Markets 2 AUSTRIA S EXPORTS AND IMPORTS Exports and imports of goods from 2001 until 2011 in billion euro 130 Imports of goods Exports of goods Source: OeNB, WKO. Current account balances from 2001 until 2011 in billion euro Excess Deficit Source: OeNB, WIFO, WKO. For many years Austria s foreign trade has been characterised by increasing volumes of exports and imports of goods. The 2009 global economic crisis was overcome in 2011 when the pre-crisis level was reached. For many years, a surplus of billions of euro has been achieved in the current account this is the sum total of all exports and imports of goods, exports and imports of services, income streams and transfer payments to and from other countries.

5 Austria s Opportunities in the World Markets 3 AUSTRIA S IMPORTS AND EXPORTS OF GOODS Imports and exports of goods in 2011 in billion euro = 10 billion Imports Exports billion billion Imports and exports by product groups in 2011 in % of total imports and total exports Animal and 0.4 vegetable oils, fats 0.2 Products, not classified elsewhere Beverages and tobacco Total imports 100% Total exports 100% Crude materials Fuels, energy, Food products Miscellaneous manufactured articles 13.8 Chemicals and related products 12.8 Manufactured products 23.4 Machinery and transport equipment Source: WKO. The qualitative structure of Austrian exports is improving continuously. In 2011, machinery and transport equipment worth more than 46 billion euro as well as manufactured products and miscellaneous manufactured articles of some 43 billion euro were exported.

6 Austria s Opportunities in the World Markets 4 Austria s imports and exports of services Imports and exports of services in 2011 in billion euro = 10 billion Imports Exports 30.3 billion 44.0 billion Imports and exports by service areas in 2011 in % of total imports and total exports Recreation and 0.5 culture 0.3 Government services Royalties and licence fees Construction services Insurance services Total imports: 100% Financial services 2.1, Communications services Computer and information services Transport Total exports: 100% Other business services 29.6 Tourist traffic Source: OeNB, Statistics Austria, WKO. In 2011, business services above all in the areas of transit trade, technology, research and development generated a surplus of well over 6 billion euro. But, like in the past, an even larger surplus was generated by the travel industry. In tourism, the difference between revenues and expenses has been between 6 and 7 billion euro for years.

7 Austria s Opportunities in the World Markets 5 Austria s exports as a driving force of economic growth Austria s export rates from Exports of goods in % of the GDP Exports of services in % of the GDP Exports of goods and services in % of the GDP Source: OeNB. Labour force1) in Austria in 1, ,000 men 100,000 women 4, , , Source: Statistics Austria 1) Definition according to the labour force concept. Registered unemployed persons have been excluded. The share of goods exports in the Austrian gross domestic product is more than 40 percent and the share of exports of goods and services some 57 percent. This means that the export industry is a central pillar of the economy. It makes the economy grow and thus helps preserve existing jobs as well as create new ones, above all in export-oriented sectors and companies.

8 Austria s Opportunities in the World Markets 6 GO INTERNATIONAL How can young people have international experiences? EU education programmes Learning Studying Working ERASMUS AUPAIR SOKRATES EURES LEONARDO ERASMUS MUNDUS eacea.ec.europa.eu/ erasmus_mundus/ LEONARDO GRUNDTVIG CEEPUS joint study GRUNDTVIG YOUTH COMENIUS Programmes by fields of study Business, Economics and Social Sciences AIESEC Medicine Law AMSA AMSA ELSA Technology and Natural Sciences IAESTE Veterinary Medicine IVSA Increasing worldwide networks between markets make international qualifications more and more important. International education programmes help young people complete part of their training and gather professional experience abroad. Relevant information can be obtained from the Association to Promote the International Exchange of Apprentices, Young Workers and Trainers of the Economy (IFA) and from the Austrian Agency for International Cooperation in Education and Research (OEAD)

9 Austria s Opportunities in the World Markets 7 THE AUSTRIAN FEDERAL ECONOMIC CHAMBER AND ITS SUPPORT OF INTERNATIONALISATION Activity areas of the Austrian Federal Economic Chamber WKO Austrian Federal Economic Chamber AW The Austrian Trade Promotion Organisation 120 Foreign Trade offices worldwide AW information Publications about business opportunities, market reports, worldwide marketing of Austrian companies AW events Events in Austria and abroad AW coaching Individual support of Austrian companies in Austria and abroad Advice and support for Procurement transactions in foreign markets Export of services Export of goods Foreign investments Innovation and technology transfer Source: WKO. Many Austrian companies use the services of the worldwide approximately 120 offices of the Austrian Foreign Trade Organisation, which acts abroad as ADVANTAGE AUSTRIA with the global website This international arm of the Austrian Federal Economic Chamber supports, advises and assists Austrian companies in all issues related to foreign trade. More information can be found at

10 Austria s Opportunities in the World Markets 8 AUSTRIA S FOREIGN TRADE WITH THE EUROPEAN UNION Austria s foreign trade in 2011 in % of the total trade in goods Exports Imports Germany Italy 6.5 France 1.5 Poland 1.9 Slovenia Spain Sweden Finland Greece Baltic countries Portugal Republic of Ireland Netherlands Denmark Slovakia Romania Hungary Bulgaria Czech Republic United Kingdom Belgium, Luxembourg 2.8 Malta, Cyprus Source: WKO. Traditionally Austria s most important trading partners are mainly its neighbouring countries, above all Germany. High growth rates can be registered for Austrian trade with Central and Eastern European states, many of which have joined the European Union since 2004.

11 Austria s Opportunities in the World Markets 9 AUSTRIA S FOREIGN TRADE BY REGIONS AND ECONOMIC AREAS Austria s foreign trade in 2011 in % Total exports of goods billion Total imports of goods billion EU NAFTA EFTA Other China, CIS countries India, Japan, South Korea Central Africa and South America 0.1 ASEAN Australia, Oceania ASEAN Association of Southeast Asian Nations: Brunei, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam EFTA European Free Trade Association: Iceland, Liechtenstein, Norway, Switzerland CIS Commonwealth of Independent States: Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Belarus NAFTA North American Free Trade Agreement: Canada, Mexico, United States Source: Statistics Austria, WKO. Some seventy percent of Austria s foreign trade is with the European Union. Other large economic areas, such as China and India, are becoming increasingly important however. Five percent of all Austrian exports go to the US, despite the strong euro.

12 Austria s Opportunities in the World Markets 10 THE IMPACT OF EXCHANGE RATES ON FOREIGN TRADE Exchange rate development of US dollar / euro (ECU) from 1980 until For one euro you get more than one US dollar euro = 1 US dollar For one euro you get less than one US dollar Source: ECB, OeNB. If the euro loses in value against other currencies, Austrian goods become cheaper for non-euro countries. Austria can export more but its imports become more expensive. If the euro gains in value, the opposite occurs. Independent of these developments, quality and cost efficiency constitute key factors for the success of the export industry.

13 Austria s Opportunities in the World Markets 11 NEW MARKETS FOR AUSTRIA S EXPORTS The BRIC states Brazil Russia Population in 2011 China1) India =100 million Brazil 194,930,000 India 1,206,920,000 Russia 142,410,000 China 1,348,120,000 Gross domestic product per inhabitant2) Brazil 3,562 9,188 2,351 Russia 9, ,159 India China = 500 = 500 3,889 Change in real GDP from 2001 until 2011 in % Austrian exports in million euro 1, , , , Source: IMF, OECD, Statistics Austria, World Bank, WKO China without Hong Kong, 2) at current prices. 1) Whereas exports to the traditional partner countries have been declining slightly in recent years, exports to other regions are showing strong growth. This applies not only to Central and Eastern Europe but also to states overseas in particular. Brazil, Russia, India, China, Turkey and other states are the most promising markets of the Austrian export industry.

14 Austria s Opportunities in the World Markets 12 THE ECONOMIC LOCATION OF AUSTRIA Austria s locational advantages stme n t inve Direc Infrastructure, quality of life, economic situation, environment, security, education and training, mobility, motivation, creativity of staff The decision of investors to set up new companies in Austria, or to keep or expand existing companies, thus securing jobs in this country, is based on many considerations. Among other factors, a country s innovation climate plays a major role in such decisions. t nves Social and political stability system of economic promotion fiscal framework conditions i ss to Proximity to the Eastern European market geographical position in Central Europe ngne Social partnership consensus-oriented resolution of industrial conflict Willi ts Innovations research and development

15 Austria s Opportunities in the World Markets 13 RESEARCH AND DEVELOPMENT Expenses for research and development in Austria from 2001 until 2011 in % of the GDP Source: OeNB. Expenses for research and development in the EU in 2010 in % of the GDP 3.9 Finland 3.4 Sweden 3.1 Denmark Portugal 1.6 Czech Republic 1.6 Spain Germany 2.8 Italy Austria 2.8 Hungary 2.3 France 2.1 Slovenia Lithuania 0.8 Poland 0.7 Belgium 2.0 Bulgaria EU Greece 0.6* 0.6 United Kingdom 1.8 Latvia 0.6 Ireland 1.8 Malta 0.6 Netherlands 1.8 Slovakia 0.6 Estonia 1.6 Romania 0.5 Luxembourg 1.6 Cyprus 0.5 Source: Eurostat * data from Intensive research and development activities as well as resulting innovative products and production processes are the prerequisite for the competitiveness of Austrian companies in a global economy. They form the basis for successful exports, economic growth and high employment levels in a national economy.

16 Austria s Opportunities in the World Markets 14 CAREER OPPORTUNITIES IN THE EXPORT INDUSTRY Career opportunities due to... high specialist competence in a pronounced personality profile regarding the export industry mobility languages creativity information technology innovation communications technology responsibility marketing intercultural understanding academic areas adaptability foreign and professional experience as well as additional qualifications initial and continuing education and training lifelong learning pupils exchange programmes, such as Leonardo Economic Promotion Institute (WIFI) WIFI offers: language courses, seminars, management programmes, in-company training, diploma courses for exports, marketing and sales students exchange programmes, such as Erasmus studies abroad, work placements temporary work at companies The numerous Austrian companies which are represented in international markets with their products secure existing jobs and create new ones. Excellent career opportunities are opened up in the export industry for people with specialist competence and the corresponding personality profile.