Located in Central Europe, Austria borders Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. The total area of this landlocked country is 84 000km² with only a quarter that is low lying. The official language German is also the mother tongue of 88.6% of the population.

Austria is a parliamentary representative democracy consisting of nine federal states. It is one of six European countries that have declared permanent neutrality and includes the concept of everlasting neutrality in the constitution. Austria has been a member of the United Nations since 1955 and joined the EU in 1995. Austria plays an active role in the Organization for Economic Co-operation and Development, Organization for Security and Cooperation in Europe and other international economic organizations.

Interesting Facts

• Vienna, the European capital of classical music, has been a centre of musical innovation since the early 1500s.
• The birthplace of a string of world famous composers such as Mozart and Strauss.
• Ludwig van Beethoven spent the better part of his life in Vienna.
• Austria is one of Europe's most heavily wooded countries.
• Austria has a great variety of flora and fauna, including endemic species that are under preservation.
• 2006 saw a record number of more than 30 million visitors to Austria.
• There are 20,000 organic farmers in Austria, the highest per capita worldwide.
• Austria's handicrafts are famous worldwide - most notably fine hand-crafted items, costume jewellery, ceramics and glassware.
• Austria is the leading generator of hydro-electric power in the EU.

Economy

Austria is the 4th richest country within the European Union having a GDP per capita of approximately 33,000 USD. Since becoming a member state of the EU it has gained closer ties to other EU economies, reducing its economic dependence on Germany. Membership in the EU has also drawn an influx of foreign investors attracted by its access to the single European market and proximity to EU aspiring economies. Austria's service sector generates the vast majority of Austria's GDP.

The primary industries are food products and luxury commodities, mechanical engineering and steel construction, chemicals and vehicle manufacturing. The production of engines and transmissions are of importance in the vehicle sector with an export quota in excess of 90%. Austria produces about 800,000 engines per annum for major car manufacturers. In the electronic engineering field, Austria is well known for the production of customised electronics products like microprocessors and integrated circuits.

Vienna, the capital city, has established itself as the door to the East and aims to expand trade and investment in the emerging markets of Central and Eastern Europe. Viennese law firms and banks are among the leading players in business with the new EU member states. Primarily due to higher growth in Europe, Austrian GDP was a higher-than-expected 3.3% in 2006.