Some industries, such as several iron and steel works and chemical plants, are large industrial enterprises employing thousands of people. However, most industrial and commercial enterprises in Austria are relatively small on an international scale.

Austria has a strong labor movement. The Austrian Trade Union Federation (OGB) comprises constituent unions with a total membership of about 1.4 million--about 40% of the country's wage and salary earners. Since 1945, the OGB has pursued a moderate, consensus-oriented wage policy, cooperating with industry, agriculture, and the government on a broad range of social and economic issues in what is known as Austria's "social partnership." The OGB has announced opposition to the new government's program for budget consolidation, social reform, and improving the business climate, and indications are rising that Austria's peaceful social climate could become more confrontational.

Austrian farms, like those of other west European mountainous countries, are small and fragmented, and production is relatively expensive. Since Austria became a member of the EU in 1995, the Austrian agricultural sector has been undergoing substantial reform under the EU's common agricultural policy (CAP). Although Austrian farmers provide about 80% of domestic food requirements, the agricultural contribution to gross domestic product (GDP) has declined since 1950 to about 2%.

Austria has achieved sustained economic growth. During the 1950s, the average annual growth rate was more than 5% in real terms and averaged about 4.5% through most of the 1960s. In the second half of the 1970s, the annual average growth rate was 3% in real terms, though it averaged only about 1.5% through the first half of the 1980s before rebounding to an average of 3.2% in the second half of the 1980s. At 2%, growth was weaker again in the first half of the 1990s, but averaged 2.5% again in the period 1997 to 2001. After real GDP growth of 1.4% in 2002, the economy grew again only 0.7% in 2003, with 2001-2003 being the longest low-growth period since World War II. In 2004, Austriaís economy recovered and grew 2.0%, driven by booming exports in response to strong world economic growth. Predictions are for the economy to grow 2.2-2.3% in 2005 and 2.2-2.4% in 2006.

Austria became a member of the EU on January 1, 1995. Membership brought economic benefits and challenges and has drawn an influx of foreign investors. Austria also has made progress in generally increasing its international competitiveness. As a member of the Economic and Monetary Union (EMU), Austria has integrated its economy with those of other EU member countries, especially with Germanyís. On January 1, 1999, Austria introduced the new Euro currency for accounting purposes.

In January 2002, Austria introduced Euro notes and coins in place of the Austrian schilling. Economists agree that the economic effects in Austria of using a common currency with the rest of the members of the Euro-zone have been positive.

Trade with other EU-25 countries accounts for about 71% of Austrian imports and exports. Expanding trade and investment in the new EU members of central and eastern Europe that joined the EU in May 2004 represent a major element of Austrian economic activity. Austrian firms have sizable investments in and continue to move labor-intensive, low-tech production to these countries. Although the big investment boom has waned, Austria still has the potential to attract EU firms seeking convenient access to developing markets in central and eastern Europe and the Balkan countries.

Total trade with the United States in 2003 reached $8.2 billion. Imports from the United States amounted to $3.5 billion, constituting a U.S. market share in Austria of 3.9%. Austrian exports to the United States in 2003 were $4.6 billion, or 5.2% of total Austrian exports.