To evaluate Austria’s international competitiveness, we can assess various determinants based on available data and general knowledge about Austria’s economic environment.
Below is an evaluation using the previously established criteria and a scoring system from 1 to 5:
1. Trade Policies
Austria, as a member of the European Union, benefits from open trade policies and access to the EU single market.
- Score: 4 (Moderate tariffs and supportive trade agreements within the EU)
2. Exchange Rate Stability
Austria uses the Euro, which is a stable currency, contributing to predictable exchange conditions.
- Score: 5 (Stable currency with favorable exchange rates)
3. Productivity Levels
Austria has a highly productive workforce, supported by a strong industrial base and a focus on advanced manufacturing and technology.
- Score: 4 (Good productivity levels with advanced sectors)
4. Innovative Capacity
Austria invests in research and development (R&D) and has a vibrant innovation ecosystem, especially in technology and sustainability.
- Score: 4 (Moderate levels of innovation with ongoing R&D efforts)
5. Market Size and Access
Austria has a relatively small domestic market but a strategic location in Central Europe allowing easy access to larger markets.
- Score: 3 (Average market size but good regional access)
6. Business Environment
Austria provides a good business environment with a strong legal framework, although bureaucracy can be an issue.
- Score: 4 (Generally supportive with minor bureaucratic challenges)
7. Quality of Infrastructure
Austria boasts high-quality infrastructure, including excellent transportation systems and logistics.
- Score: 5 (World-class infrastructure)
8. Access to Finance
Businesses generally have access to financing, although terms can vary based on company size and sector.
- Score: 4 (Generally accessible finance with reasonable conditions)
9. Workforce Skills
Austria has a well-educated and skilled workforce, with strong vocational training programs.
- Score: 4 (Highly skilled workforce)
10. Political and Economic Stability
Austria is known for its political stability and robust economic framework, contributing to a favorable investment climate.
- Score: 5 (Stable political and economic environment)
Summary Table
| Determinant | Score |
| Trade Policies |4
| Exchange Rate Stability |5
| Productivity Levels | 4
| Innovative Capacity |4
| Market Size and Access | 3
| Business Environment |4
| Quality of Infrastructure |5
| Access to Finance |4
| Workforce Skills | 4 |
| Political and Economic Stability |5 |
Total Score
- Total Competitiveness Score = 4 +5 + 4 +4 + 3 +4 + 5 + 4 + 4 + 5 = 46 out of 50
- Average Score =46 / 10 = 4.6
Conclusion
Based on this evaluation, Austria can be rated approximately 4.6, indicating high competitiveness in the international market. Austria’s strengths in a stable economy, skilled workforce, and infrastructure, alongside good trade policies and access to finance, contribute to its strong competitive position.
