AUSTRIA

External challenges, strong domestic fundamentals

AA1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD416.596bn (World ranking 27, World Bank 2017)
Population 8.81mn (World ranking 96, World Bank 2017)
Form of state Federal Republic
Head of government Brigitte Bierlein (Chancellor)
Next elections September 2019
  • Competitive high-income economy
  • Good budgetary position
  • Low external imbalances
  • Banking sector weaknesses
  • High export-dependence
  • Elevated public debt level
  • Unfavorable demographics

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Germany 29%
1
41% Germany
United States 6%
2
6% Italy
Italy 6%
3
5% Switzerland
Switzerland 5%
4
5% Czech Republic
Slovakia 5%
5
4% Netherlands

Trade structure by product

(% of total)

Exports Rank Imports
Industrial machinery and parts 18%
1
31% Non-monetary gold
Electrical machinery, apparatus and appliances 12%
2
11% Pharmaceutical products
Road vehicles 10%
3
7% Industrial machinery and parts
Pharmaceutical products 5%
4
6% Road vehicles
Plastics and articles thereof 5%
5
5% Electrical machinery, apparatus and appliances
The payment behaviour of domestic companies is good and the EU legal framework provides reliable tools when it comes to late payment issues.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

The court system is efficient and reliable overall, but pre-legal action conducted by specialists remains the most effective method of collecting debt.

Austrian insolvency law aims to rescue companies in order to increase the chances of recovering debts. It establishes a legal requirement for reorganization plans to provide a minimum quota of 20% in 2 years. However, it is rare for unsecured creditors to recover significantly where reorganization fails or bankruptcy proceedings are started from the beginning.

Euler Hermes

Economic Research Team

research@eulerhermes.com

Gregor Eder

Country Risk Analyst

gregor.eder@allianz.com

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