Economy - overview: Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. The Austrian economy also benefits greatly from strong commercial relations, especially in the banking and insurance sectors, with central, eastern, and southeastern Europe. The economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Membership in the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to the new EU economies. The outgoing government has successfully pursued a comprehensive economic reform program, aimed at streamlining government, creating a more competitive business environment, further strengthening Austria's attractiveness as an investment location, and implementing effective pension reforms; however, lower taxes in 2005-2006 have lead to a small budget deficit in 2006. Weak domestic consumption and slow growth in Europe have held the economy to growth rates below 3% in 2002-05. Due to higher growth across Europe, Austrian grew 3.3 percent in 2006. To meet increased competition from both EU and Central European countries, particularly the new EU members, Austria will need to continue restructuring, emphasizing knowledge-based sectors of the economy, and encouraging greater labor flexibility and greater labor participation by its aging population. GDP (purchasing power parity): $279.5 billion (2006 est.) GDP (official exchange rate): $309.3 billion (2006 est.) GDP - real growth rate: 3.3% (2006 est.) GDP - per capita (PPP): $34,100 (2006 est.) GDP - composition by sector: agriculture: 1.8% industry: 30.4% services: 67.8% (2005 est.) Labor force: 3.52 million (2006 est.) Labor force - by occupation: agriculture: 3% industry: 27% services: 70% (2005 est.) Unemployment rate: 4.9% (2006 est.) Population below poverty line: 5.9% (2004) Household income or consumption by percentage share: lowest 10%: 3.3% highest 10%: 22.5% (2004) Distribution of family income - Gini index: 31 (2002) Inflation rate (consumer prices): 1.6% (2006 est.) Investment (gross fixed): 21% of GDP (2006 est.) Budget: revenues: $155.9 billion expenditures: $161.6 billion; including capital expenditures of $NA (2006 est.) Public debt: 63% of GDP (2006 est.) Agriculture - products: grains, potatoes, sugar beets, wine, fruit; dairy products, cattle, pigs, poultry; lumber Industries: construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood processing, paper and paperboard, communications equipment, tourism Industrial production growth rate: 5.7% (2006 est.) Electricity - production: 65.56 billion kWh (2004) Electricity - production by source: fossil fuel: 29.3% hydro: 67.2% nuclear: 0% other: 3.5% (2001)