During a courtesy meeting with a delegation from Partit Laburista, Malta Chamber...
Vienna is the capital city of the Republic of Austria. It is also among the nine states in Austria. Vienna is the most important and the primary city of Austria, with total population of 2.3 million. Thus, Vienna accounts for more than 25% of the population of Austria and it is the largest city in the country. In addition, it is also the cultural, political and economic centre of the country. Vienna counts as the tenth largest city in the entire European Union. Vienna also plays host a lot of major International Organizations, such as OPEC and the UNO.
Vienna lies to the eastern side of the Austria country, with close proximity to the countries of Slovakia, Czech Republic and Hungary. Vienna forms a combined metropolitan region of 3 million people along with Bratislava, and is referred to as Twin City. In the year 2001, the city centre was declared by the UNESCO as a World Heritage Site.
The economic data from the city of Vienna are one of the best in the European Union. It has established itself not only as the driving force of the Austrian economy, but also as a major hub for East-West business. In the backdrop of the worldwide economic and financial crisis, Vienna’s economy has held its own and continued its development.
In terms of location analysis, Vienna was ranked among the top ten and a leader in the European Union by the Bank Austria UniCredit Group. The per capita GDP of this city has also climbed up to more than 180% of the average GDP of the European Union. Vienna has gained profit from the opening of Eastern Europe. This is evident from the fact that around 40% of the profit and sales from the Vienna economy are created in the Central and Eastern European countries.
The number of foreign investors in Vienna has increased substantially in the past few years. These foreign investors are mostly East European investors. In the year 2008, a total of 29 business enterprises from East and Central Europe set up their businesses in Vienna, from 19 enterprises in 2007. This confirmed the upward trend of investments in Vienna, irrespective of the global financial crisis. In addition, Vienna has reported to have the strongest purchasing power in Austria. This is on the back of the positive economic growth rate during recent years. The topmost levels were recorded in 1999, 2000 and 2006 at 3.1 and 2.9% of the GDP. Before the economic crisis the rate of growth was calculated at 2.6% and 1.6% in 2008, with an upswing being expected in the following years.
There are around 300 international groups of companies that have set themselves up in Vienna. Other than this, there are around 450,000 enterprises in Austria with 103,000 being located in Vienna. The city of Vienna strongly supports and promotes small and medium sized businesses. Around 30,000 enterprises in Vienna are engaged in trade. 20,000 companies are engaged in producing manufacturing high-tech products, employing more than 150,000 employees. This is an equivalent of an increase of 33 per cent since the year 1998, and a 20 per cent increase in the number of employees in the technology sector.
The service sector generates more than 80 per cent of Vienna’s economic output. This is clearly seen in the number of companies and employees in the private sector. In the year 2006, over 40 per cent of the companies and 25 per cent of the employees in Vienna were in the real estate and corporate service sectors.
The Vienna region, that includes Vienna and Burgenland and Lower Austria, contributed 44.6 per cent of Austria’s economic performance. The Gross urban product of Vienna in the year 2006 was €62,211 million. The GUP of the manufacturing sector in the same year was recorded at €16.8 million and the consumer and business services sector was recorded at €83 million. The GRP of Vienna in terms of purchasing power parity was noted at 36,200, while the GRP per capita was 41,500. The purchasing power parity of Vienna was in itself calculated at 77.2, among the top ten cities in the European Union.
The key area of investment in Vienna is in the service sector, with real estate and corporate services ranking on top. Vienna also serves as a crucial connecting point for the East European countries, making it a key investment hotspot for such companies. With an excellent logistics network, Vienna can serve as a bridge between the East and the West.
The acceptance of the Euro and rapid structural changes have been the basic framework of the economic policy of Vienna, with the fiscal and structural policies being of crucial importance for the continuous growth and competitiveness of the country of Austria as a whole. A large number of structural reforms have aided in making Vienna an investment-friendly destination. These reforms are in the fields of energy supply, telecommunications, research and development and financial services. The Austrian government has stated its resolve and commitment to pursue a sustainable investment and financial policy. It aims to maintain a balanced budget over the business cycle and reduce the reactions to cyclic fluctuations in the market.
The ABA website for investing in Austria provides the necessary information to invest in Vienna. This information includes details on the laws that are applicable to businesses, the investment policy and performance of the Vienna economy in the recent years.
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