Mini-Paper #4: Economy
Currency: Euro (EUR)
Public Debt: 59.1% of Gross Domestic Product
Budget: revenues: $177.5 billion expenditures: $179.9 billion
Inflation Rate: 2.2%
Labor Force: 3.566 million
Unemployment Rate: 4.4%
Austria has a well-known history of a high standard of living and is very similar to several EU economies. Austria uses the Euro and has done so since 1998. Austria’s economy prospers greatly from commercial relations like banking and insurance. Austria’s involvement in these sectors and their involvement in the European Union and Austria’s access to a single European market has brought numerous amounts of foreign investors which has led to a prosperous investment Economy. Austria has experienced slowed economic progress though in 2008 as rising oil prices and increasing problems in the financial market are major issues and Austria has a very noticeable public debt. I feel that for Austria to continue with economic progress and decrease their public debt, it must continue to be a competitive investment entity as it faces mounting financial problems other nations face these problems, Austria and all its sectors will be a nation that many invest their money in an attempt to avoid their own country’s economic fallouts.
Currency: Estonian kroon (EEK)
Public Debt: 3.4% of Gross Domestic Product
Budget: revenues: $7.854 billion, expenditures: $7.171 billion
Inflation Rate: 6.6%
Labor Force: 687,000
Unemployment Rate: 4.7%
Estonia’s small but strong economy benefits greatly from successful telecommunication sectors and electronic sectors. Estonia is also known for a very strong commercial baking sector. Being that those are Estonia’s main sectors of it’s free-market-based economy, it has experienced respectable economic progress with relatively low public debt unlike Austria. In 1994, Estonia became one of the only countries in the world to institute a “flat tax” of 26%, regardless of...