O E C D E c o n o OECD Economic Surveys m ic S u r v e AUSTRIA y s V JULY 2017 o lu m e 2 0 1 7 / 1 A U S T R IA J u ly 2 0 1 7 OECD Economic Surveys: Austria 2017 This document and any map included herein are without prejudice to the status of or sovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundaries andtothenameofanyterritory,cityorarea. Pleasecitethispublicationas: OECD(2017),OECDEconomicSurveys:Austria2017,OECDPublishing,Paris. http://dx.doi.org/10.1787/eco_surveys-aut-2017-en ISBN978-92-64-27875-2(print) ISBN978-92-64-27876-9(PDF) ISBN978-92-64-27877-6(epub) Series:OECDEconomicSurveys ISSN0376-6438(print) ISSN1609-7513(online) OECDEconomicSurveys:Austria ISSN1995-3127(print) ISSN1999-0189(online) ThestatisticaldataforIsraelaresuppliedbyandundertheresponsibilityoftherelevantIsraeliauthorities.Theuse ofsuchdatabytheOECDiswithoutprejudicetothestatusoftheGolanHeights,EastJerusalemandIsraeli settlementsintheWestBankunderthetermsofinternationallaw. 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TABLEOFCONTENTS Table of contents BasicstatisticsofAustria,2016............................................... 7 Executivesummary......................................................... 9 Assessmentandrecommendations........................................... 13 Growthispicking-upanddigitalisationbringsnewchallengesandopportunities... 14 Growthispickingup .................................................... 21 Macroeconomicpolicyhasbeensupportive................................. 25 Raisingmedium-termgrowth............................................. 34 Seizingopportunitiesandaddressingthechallengesarisingfromdigitalisation... 39 Challengesforgreengrowth.............................................. 49 Bibliography............................................................ 51 Annex.Progressinstructuralreform........................................... 55 Thematic chapters Chapter1.Austria’sdigitaltransition:Thediffusionchallenge.................... 61 Austriaisinanintermediarypositioninthedigitaltransition................. 62 Convergencewiththeglobaltechnologicalfrontierisunevenacrosssectors andfirms .............................................................. 65 Digitalisationtrendsinthebusinesssector................................. 68 Digitalisationtrendsinhouseholds........................................ 84 Publicstrategiestofosterdigitaltransitioncallforbroadsocialsupport ........ 91 RecommendationstofacilitateICTdiffusion.................................. 97 Bibliography............................................................ 97 Chapter2.Inclusivelabourmarketsinthedigitalera............................ 101 Thefutureofwork ...................................................... 102 Gettingskillsright ...................................................... 113 Usingskillseffectivelyinthelabourmarket ................................ 129 Recommendationsforinclusivelabourmarketsinthedigitalera.................. 137 Bibliography............................................................ 138 Boxes 1. Consideringthetax-and-benefitsystemasawhole ...................... 16 2. TheJanuary2017policypackage....................................... 26 3. ImplementationofafiscalinitiativeintheEuropeancontext.............. 28 4. Capacityadjustmentsinthebankingsector............................. 32 5. Austria’s“DigitalRoadmap”........................................... 39 OECDECONOMICSURVEYS:AUSTRIA©OECD2017 3 TABLEOFCONTENTS 1.1. Specialeconomicimpactsofdigitalisation.............................. 64 1.2. TheOpenInnovationStrategyanddigitalisation-orientedprogrammes ..... 82 1.3. HagenbergSoftwarePark ............................................. 84 1.4. AirbnbandUberinAustria:Vienna’sapproachtothe“sharing”economy.... 95 2.1. Statutorydifferencesbetweennon-standardandstandardwork ........... 109 2.2. Educationreform2015 ............................................... 116 2.3. Singapore’sSkillsFutureprogramme ................................... 128 2.4. Labourmarketmismatch:evidencefromPIAAC ......................... 133 Tables 1. Macroeconomicindicatorsandprojections.............................. 24 2. Possibleshocksandtheireconomicimpact ............................. 24 3. Pastrecommendationstopromotegenderequalityandactionstaken ...... 35 4. Pastrecommendationstopromotegrowth.............................. 38 Figures 1. Well-beingishigh ................................................... 15 2. Redistributionplaysanimportantrole.................................. 16 3. Divergencesinlifesatisfaction ........................................ 17 4. Thelow-educatedfacespecialpressures................................ 18 5. Migrationinflowshavefosteredlaboursupply........................... 19 6. Jobtenureislongandgeographicmobilitylow .......................... 20 7. Austria’smarketshareinmainexportdestinations ...................... 22 8. Recentdevelopments ................................................ 23 9. Evolutionofmacro-financialvulnerabilitiessince2007 ................... 25 10. Fiscalbalanceshaveimprovedbutdebtremainshigh..................... 26 11. Long-termfiscalpressuresarisingfromageingarehigh................... 29 12. Thepublicdebtpathishighlyuncertain ................................ 29 13. Revenueandspendingstructuresofferroomforreform .................. 30 14. Bankprofitabilityandcapitaladequacyarerelativelylow ................. 32 15. Monetarypolicytransmissionoperateswellbuttherearesignsoffriction... 33 16. Potentialgrowthhasweakened........................................ 34 17. Participationincreasedbutmainlyinpart-timejobs...................... 35 18. Labourproductivitygrowthbysector................................... 37 19. Retailandprofessionalservicesremainover-regulated ................... 39 20. AdvanceddigitalinfrastructuresarelessusedinAustria.................. 41 21. EnterpriseslagbehindpeersinmostICTapplications .................... 42 22. Theoveralldegreeofdigitalisationisbehinditsexpectedlevel............. 43 23. SmallfirmsdisplaydistinctweaknessesinICTs ......................... 44 24. ICTadoptiongapsbetweenpopulationgroups:thecaseofe-commerce..... 46 25. DifferencesinskillsuseatworkbetweenAustriaandpeercountries ....... 47 26. Theadultpopulation’sdigitalproficiencyislowerthaninpeercountries.... 48 27. Greengrowthindicators:Austria....................................... 50 1.1. Austriaintheinternationaldigitaltransition............................ 63 1.2. Austriaisaninnovationleaderine-governmentbutdiffusionisslow amonghouseholds................................................... 64 1.3. ICTusageacrossindustries ........................................... 67 4 OECDECONOMICSURVEYS:AUSTRIA©OECD2017 TABLEOFCONTENTS 1.4. Machine-to-machinemobilecellularsubscriptions....................... 68 1.5. Broadbandconnectivity .............................................. 69 1.6. Digitalmarketing.................................................... 71 1.7. Digitalmanagement ................................................. 72 1.8. Cloudcomputing.................................................... 73 1.9. Theadultpopulation’sdigitalproblemsolvingproficiencyislowerthan inpeercountries .................................................... 75 1.10. ToofewAustrianshaveadvanceddigitalskills........................... 76 1.11. Austria’spositioninICT-specialistskills ................................ 78 1.12. Austrianfirms’workprocessesarelessinformation-intensive............. 79 1.13. TheorganisationofICTfunctionsinfirmsdiffersfrompeercountries ...... 80 1.14. Firmdemographicsmaybeaffectingthemodernisationofbusinessmodels ... 82 1.15. Broadbandconnectivityofhouseholds ................................. 85 1.16. Averageadvertiseddownloadspeeds................................... 86 1.17. Useofcomputersandinternetbyhouseholds ........................... 86 1.18. Specificinternetapplicationsusedbyhouseholds........................ 87 1.19. Influenceofage ..................................................... 88 1.20. Influenceofeducation ............................................... 89 1.21. Influenceofgender .................................................. 90 1.22. Influenceofimmigrationorigin........................................ 90 1.23. Fibresubscriptionsamongcountries ................................... 93 2.1. Changeinemploymentsharesbetween1998and2015 ................... 103 2.2. EmploymentratesinAustriabyageandlevelofeducation................ 103 2.3. Automationwillaffectalargeshareofjobs ............................. 104 2.4. Estimatedeffectofskilluseatworkonautomatibilityofjobs.............. 105 2.5. DifferencesinskillsuseatworkbetweenAustriaandpeercountries ....... 106 2.6. “Brightoutlookoccupations”intheUnitedStates........................ 107 2.7. Shareof“brightoutlookoccupations”byeducationalattainment .......... 107 2.8. Structureofgeneralgovernmentrevenues .............................. 112 2.9. Thetax-and-transfersystemisstronglyredistributive.................... 113 2.10. Many15-year-oldslackbasicscientificskills ............................ 114 2.11. Attitudestowardsscience............................................. 117 2.12. Problem-solvingbyeducationalattainment ............................. 119 2.13. Statusofthe20-24year-olds .......................................... 120 2.14. Uppersecondaryenrolmentratesof15-19year-olds...................... 121 2.15. Timetofirstemploymentbytypeofeducation .......................... 124 2.16. Medianmonthlyearningsbytypeofeducationaltrack.................... 125 2.17. Participationrateineducationandtraining ............................. 127 2.18. Employmentbygenderandageofyoungestchildinhousehold............ 129 2.19. Employmentratesof55-64yearolds ................................... 130 2.20. Educationalattainmentandlabourmarketstatusbyplaceofbirth......... 131 2.21. Field-of-studymismatchbyfieldandoccupationalgroup ................. 132 2.22. Policyreformscanreduceskillsmismatch .............................. 134 2.23. DifferencesintheuseofICTatwork ................................... 136 2.24. Differenceintheprevalenceoflearningandflexibilityatwork............. 136 OECDECONOMICSURVEYS:AUSTRIA©OECD2017 5 ThisSurveyispublishedontheresponsibilityoftheEconomicandDevelopment ReviewCommittee(EDRC)oftheOECD,whichischargedwiththeexaminationofthe economicsituationofmembercountries. TheeconomicsituationandpoliciesofAustriawerereviewedbytheCommittee on19June2017.Thedraftreportwasthenrevisedinthelightofthediscussionsand givenfinalapprovalastheagreedreportofthewholeCommitteeon28June2017. The Secretariat’s draft report was prepared for the Committee by Rauf Gönenç andVolkerZiemann,withhelpfromVincenzoSpiezia(STI),underthesupervisionof VincentKoen.KamranKazemzadeh(MinistryofFinance)andMichaelKraft(Federal Chancellery), seconded to the OECD Secretariat, provided very valuable inputs. ResearchassistancewasprovidedbyBéatriceGuérardandsecretarialassistanceby SisseNielsenandMercedesBurgos. ThisSurveyispublishedundertheresponsibilityoftheSecretary-Generalofthe OECD. ThepreviousSurveyofAustriawasissuedinJuly2015. InformationaboutthelatestaswellaspreviousSurveysandmoreinformation abouthowSurveysarepreparedisavailableatwww.oecd.org/eco/surveys. Follow OECD Publications on: http://twitter.com/OECD_Pubs http://www.facebook.com/OECDPublications http://www.linkedin.com/groups/OECD-Publications-4645871 http://www.youtube.com/oecdilibrary OECD Alerts http://www.oecd.org/oecddirect/ This book has... StatLinks2 A service that delivers Excel ® files from the printed page! 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BASICSTATISTICSOFAUSTRIA,2016 (NumbersinparenthesesrefertotheOECDaverage)* LAND,PEOPLEANDELECTORALCYCLE Population(million) 8.6 Populationdensityperkm2 105.5 (37.2) Under15(%) 14.3 (17.9) Lifeexpectancy(years,2014) 81.6 (80.6) Over65(%) 18.9 (16.6) Men 79.2 (77.9) Foreign-born(%,2014) 17.5 Women 84.0 (83.3) Latest5-yearaveragegrowth(%) 0.4 (0.6) Latestgeneralelection(presidential) December2016 ECONOMY Grossdomesticproduct(GDP) Valueaddedshares(%) Incurrentprices(billionUSD) 386.4 Primarysector 1.3 (2.5) Incurrentprices(billionEUR) 349.4 Industryincludingconstruction 28.1 (26.7) Latest5-yearaveragerealgrowth(%) 1.1 (1.9) Services 70.7 (70.8) Percapita(000USDPPP) 50.1 (42.1) GENERALGOVERNMENT PercentofGDP Expenditurea 51.1 (40.9) Grossfinancialdebt(2015) 106.2 (109.0) Revenue 49.5 (38.9) Netfinancialdebt(2015) 57.1 (70.0) EXTERNALACCOUNTS Exchangerate(EURperUSD) 0.904 Mainexports(%oftotalmerchandiseexports,2015) PPPexchangerate(USA=1) 0.798 Machineryandtransportequipment 39.9 InpercentofGDP Manufacturedgoods 32.5 Exportsofgoodsandservices 52.1 (53.9) Chemicalsandrelatedproducts,n.e.s. 12.4 Importsofgoodsandservices 48.6 (49.4) Mainimports(%oftotalmerchandiseimports,2015) Currentaccountbalance 1.7 (0.3) Machineryandtransportequipment 34.2 Netinternationalinvestmentposition 4.9 Manufacturedgoods 30.7 Chemicalsandrelatedproducts,n.e.s. 13.7 LABOURMARKET,SKILLSANDINNOVATION Employmentratefor15-64year-olds(%) 71.6 (67.0) Unemploymentrate,LabourForceSurvey (age15andover)(%) 6.0 (6.3) Men 75.4 (74.7) Youth(age15-24,%) 11.2 (13.0) Women 67.7 (59.3) Long-termunemployed(1yearandover,%) 1.9 (2.0) Participationratefor15-64year-olds(%) 76.2 (71.7) Tertiaryeducationalattainment25-64year-olds(%,2015) 30.6 (35.0) Averagehoursworkedperyear(2015) 1625 (1766) GrossdomesticexpenditureonR&D(%ofGDP)a 3.1 (2.4) ENVIRONMENT(2015) Totalprimaryenergysupplypercapita(toe) 3.8 (4.1) CO2emissionsfromfuelcombustionpercapita (tonnes,2014) 7.1 (9.4) Renewables(%) 29.2 (9.6) Municipalwastepercapita(tonnes) 0.6 (0.5) Exposuretoairpollution(morethan10µg/m3 ofPM2.5,%ofpopulation) 86.5 (75.2) SOCIETY Incomeinequality(Ginicoefficient,2013) 0.280 (0.311) Educationoutcomes(PISAscore,2015) Relativepovertyrate(%,2013) 9.0 (11.1) Reading 485 (493) Mediandisposablehouseholdincome(000USDPPP,2013) 29.3 (22.0) Mathematics 497 (490) Publicandprivatespending(%ofGDP) Science 495 (493) Healthcare(2015) 10.4 (9.0) Shareofwomeninparliament(%) 30.6 (28.7) Pensions(2013) 14.0 (9.1) Netofficialdevelopmentassistance(%ofGNI) 0.41 (0.39) Education(primary,secondary,postsec.nontertiary,2013) 3.2 (3.7) Betterlifeindex:www.oecdbetterlifeindex.org **WheretheOECDaggregateisnotprovidedinthesourcedatabase,asimpleOECDaverageoflatestavailabledataiscalculatedwhere dataexistforatleast29membercountries. a) 2015fortheOECDaverage. Source: Calculationsbasedondataextractedfromthedatabasesofthefollowingorganisations:OECD,InternationalEnergyAgency, WorldBank,InternationalMonetaryFundandInter-ParliamentaryUnion.