three equal horizontal bands of red (top), white, and red; the flag design is certainly one of the oldest - if not the oldest - national banners in the world; according to tradition, following a fierce battle in the Third Crusade, Duke Leopold V of Austria's white tunic became completely blood-spattered; upon removal of his wide belt or sash, a white band was revealed; the red-white-red color combination was subsequently adopted as his banner Economy ::Austria Economy - overview: Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the global economic downturn in 2008 led to a recession that is likely to persist through 2009. The government's stabilization measures could increase the budget deficit to about 2.8% of GDP in 2009 and above 3% in 2010, from about 0.6% in 2008. The Austrian economy has benefited greatly in the past from strong commercial relations, especially in the banking and insurance sectors, with central, eastern, and southeastern Europe, but these sectors have been vulnerable to recent international financial instabilities, and some of Austria's largest banks have required government support. Even after the global economic outlook improves, Austria will need to continue restructuring, emphasizing knowledge-based sectors of the economy, and encouraging greater labor flexibility and greater labor participation to offset its aging population and exceedingly low fertility rate. GDP (purchasing power parity): $331.2 billion (2008 est.) country comparison to the world: 37 $324.7 billion (2007 est.) $313.7 billion (2006 est.) note: data are in 2008 US dollars GDP (official exchange rate): $414.8 billion (2008 est.) GDP - real growth rate: 2% (2008 est.) country comparison to the world: 159 3.5% (2007 est.) 3.5% (2006 est.) GDP - per capita (PPP): $40,400 (2008 est.) country comparison to the world: 21 $39,600 (2007 est.) $38,300 (2006 est.) note: data are in 2008 US dollars GDP - composition by sector: agriculture: 1.9% industry: 30.7% services: 67.4% (2008 est.) Labor force: 3.633 million (2008 est.) country comparison to the world: 95 Labor force - by occupation: agriculture: 5.5% industry: 27.5% services: 67% (2005 est.) Unemployment rate: 3.9% (2008 est.) country comparison to the world: 45 4.4% (2007 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: 26 (2007) country comparison to the world: 125 31 (1995) Investment (gross fixed): 22.4% of GDP (2008 est.) country comparison to the world: 76 Budget: