Regions and Cities at a Glance 2018 – AUSTRIA http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016

Top 20 % richest over bottom 20% poorest regions GDP per capita in USD PPP 2016 2000 Ratio 4 60 000 Highest region Small regions Large regions (TL3) (TL2) 55 000 Salzburg 50 000 51 990 USD 3 45 000 Austria 40 000 43 142 USD

35 000 2 30 000 Lowest region 25 000 Burgenland 20 000 29 870 USD 1 2000 2005 2010 2016

Country (number of regions considered)

The gap in GDP per capita between the richest and poorest region decreased in Austria over the last sixteen years. In Burgenland, GDP per capita increased by more than 20% over the period 2000-16, while it stagnated in Salzburg, the richest region. Among the countries with the lowest regional disparities in GDP per capita, Austria ranks in the top 25%. Over the last sixteen years – and particularly in the wake of the global financial crisis –, productivity growth in Austrian regions was below the OECD average, with growth ranging from 1 % per year over 2000-16 in Vorarlberg to 0.05% per year in the region of Vienna. The youth unemployment rate in Vienna reached 16.7% in 2017, more than twice the level of Upper Austria, but slightly above the 15% OECD average.

Productivity trends, most and least dynamic regions, 2000-16 Youth unemployment rate, 15-24 years old, 2007-17 GDP per worker in USD PPP Vienna region: highest rate (% ) 100 000 productiv ity in 2016 and 25 Highest rate 95 000 low est productiv ity OECD grow th (0.05% av erage 20 Vienna region 90 000 annual grow th ov er 16.7% 15 85 000 Austria 2000-16) Austria Vorarlberg: highest 9.8% 80 000 10 productiv ity grow th (+1% Lowest rate 75 000 annually ) 5 Upper Austria 7.1% 70 000 0 2000 2005 2010 2016

2007 2012 2017

Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); Austria is composed of 9 large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010).

Updated the 5th of March 2019

Differences in well-being across regions

Top region Bottom region Vienna region Regions (Bundeslände)

Salzburg Tyrol Carinthia Tyrol Vorarlberg Styria Vorarlberg

top top 20% Lower Austria

Carinthia (1 to (1 to 402) Burgenland Vienna Burgenland Tyrol Vienna Vorarlberg Vorarlberg

middle middle 60% Vienna Vorarlberg Vienna

Vienna Ranking Ranking of OECD regions Vienna

Vienna bottom bottom 20%

Jobs Community Environment Safety Health Civic Housing Life Education Access to Income Engagement Satisfaction services

Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

All nine Austrian regions are among the top 25% of OECD regions in income. The largest regional disparities are found in terms of jobs outcomes (employment and unemployment rates): the region of Vienna is among the bottom 25% of OECD regions, while Salzburg ranks among the top 10%. Apart from air pollution, the high-performing Austrian regions fare better than the OECD median region in all well-being dimensions. The low-performing Austrian regions fare better than the OECD median region in several well-being indicators, such as homicide rate, income per capita, broadband access, voter turnout and life satisfaction.

OECD Country Austrian regions Median Average Top 20% Bottom 20% Jobs Employment rate 15 to 64 years old (%), 2017 67.7 70.8 74.6 63.7 Unemployment rate 15 to 64 years old (%), 2017 5.5 5.6 3.5 10.5 Community Perceived social netw ork support (%), 2013 91.4 92.4 94.8 90.8 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 12.4 16.7 12.5 21.5 Safety Homicide Rate (per 100 000 people), 2016 1.4 0.5 0.2 0.9 Health Life Expectancy at birth (years), 2016 80.4 81.8 82.7 80.9 Age adjusted mortality rate (per 1 000 people), 2016 8.1 7.5 6.9 8.1 Civic engagement Voters in last national election (%), 2017 or lastest year 70.9 80.0 84.8 75.2 Housing Rooms per person, 2016 1.8 1.8 1.9 1.6 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 6.8 7.3 7.4 7.2 Education Labour force w ith at least upper secondary education (%), 2017 81.7 86.1 88.1 84.0 Access to services Households w ith broadband access (%), 2017 78.0 88.0 89.7 86.3 Income Disposable income per capita (in USD PPP), 2016 17 695 23 770 24 912 23 003

Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Austria is composed of 9 large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019

Metropolitan areas in the national economy

OECD population is concentrated in cities* Percentage of population in cities, 2016 UnitedAustria States OECD average

people people in cities outside cities people with population 30% people in cities 8.6 million 40% above 500 000 1.2 billion outside cities 44% 55% with population people - 56% people - 70% above 500 000 live in cities live in cities people in cities with 6% population between 50 000 and 250 000 9% people in cities with 3% 13% people in cities with population between population between people in cities with population 50 000 and 250 000 250 000 and 500 000 between 250 000 and 500 000

Source: OECD Metropolitan Database. Number of cities: 6 in Austria and 1 138 within the OECD. In Austria, 56% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 40% compared to 55% in the OECD area.

Importance of metropolitan areas Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2015 Cities above 500 000 people, 2000-15 Austria OECD average % % Austria OECD average 80 80 68% 70 63% 70 58% 55% 60 60 50 43% 40% 40% 50 37% 40 40 30 30 areas

20 20 Vienna

10 10 327metropolitan 0 0 % of national % of national % of national 1 2 All metropolitan areas Largest contributor GDP employment population Metropolitan areas in Austria account for 43% of national GDP and 40% of employment. Between 2000 and 2015, they generated 37% of the national GDP growth. In terms of GDP per capita, Vienna and Linz rank in the highest third among the 327 OECD metropolitan areas. Air pollution in Austrian metropolitan areas is above the OECD average. The two Austrian metropolitan areas are among the third most polluted in the OECD.

OECD Metropolitan areas ranking Cities above 500 000 people USD PPP GDP per 100 000 80 000 capita, 2016 60 000 (or latest available 40 000 20 000 year, Austria 2015) 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas

Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas metropolitan areas

Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: 2 in Austria compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

Updated the 5th of March 2019 Subnational government finance

Subnational government expenditure by function As a share of total subnational government expenditure, 2016

Austria 0 0 OECD average

Health 26% 1 1 18% Health Social protection 22% 2 2 14% Social protection

Education 17% 3 3 25% Education

General public services 15% 4 4 14% General public services

Economic affairs 13% 5 5 14% Economic affairs

Other 8% 6 6 15% Other

Subnational expenditure per capita: USD 9 174 7 7USD 6 817

Subnational government expenditure amounts to USD 9 174 per capita in Austria compared to an OECD average of USD 6 817. In Austria, this is equivalent to 36% of total public expenditure and to 18% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40% of total public expenditure and for 16% of GDP. Health and social protection are the two largest spending items for subnational governments in Austria: together they represent 48% of subnational expenditure compared to 32% in the OECD area. In Austria, 41% of total public investment was carried out by subnational governments (SNG) compared to an OECD average of 56.9%. Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita Austria OECD average 1 600

1 400 1 200 Total public investment USD 1 512 per capita Total public investment 1 000 3% of GDP USD 1 278 per capita 800 3.0% of GDP

600 Subnational government Subnational government 400 investment investment USD 620 per capita USD 727 per capita 200 41.0% of public investment 56.9% of public investment 0

Source: OECD Subnational Government Structure and Finance Database. Note: The function ‘Other’ includes housing and community amenities, recreation, culture and religion; environment; public order and safety.

OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9

Updated the 5th of March 2019