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The Economy since 1950

50 euro notes © photocase.com/Elektromolch

© photocase.com/Elektromolch

Austria - a country which was one of the poorest in Europe after World War II - has developed into one of the richest countries in the world over the last few decades. Here is a short overview of how this was achieved.

Austria's economy was in a bad condition after the end of the second World War - infrastructure was destroyed and industrial production was limited.

In 1948 the Marshall Plan was implemented. The aim was to build up an independent economy.

In the early years after the war the driving force of the economy was state-owned industry. In 1952 the Schilling became the stable currency; economic growth in the years that followed moved into double figures. Businesses flourished, the quality of housing and infrastructure building improved.

One of the success factors of the Austrian economic boom was the 'Social Partnership'. Co-operation between employee representatives and employers was the basis for reasonable wages and investments.

The economic boom ended in the 1970s due to the oil crisis.

The most important influences on the Austrian economy in the last ten to fifteen years have been Austria's entry to the EU (1995), the opening up of the former Eastern Bloc and the expansion of the EU to Eastern Europe.

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