Record Austrian consumer confidence.

Part of Austria's success-which is currently increasingly evident-has to do with the country's location. Austria is almost a junction between the new European Union (EU) members (the former Soviet block entities) and the established markets of the euro zone.

Austria's consumers can take some credit as well. "Private consumption is picking up," says a review of the economy published in the Austrian Economic Quarter with a Second Quarter 2007 cover date. The journal is published by the Austrian Economic Research Institute (Wifo), a Vienna based independent think tank.

Wifo estimates that Austrian GDP will grow 3.0 percent in 2007 following an increase of 3.2 percent in 2006. The International Monetary Fund (IMF) estimates Austrian GDP at 2.8 percent for 2007, moderating to 2.4 percent in 2008.

A short announcement in a May 24, 2007 collection of news briefs published by the Federal Chancellery said that the Organization for Economic Cooperation and Development (OECD) was forecasting a 3.2 percent increase in Austrian GDP for 2007. The OECD forecast euro zone growth at 2.7 percent, significantly lower than that of Austria.

Importantly, the May 2007 Austrian consumer confidence indicator registered 15 points-a record in Eurostat confidence readings measured from 1990.

When asked about the state of individual households looking forward 12 months, consumer replies left that index component at 1 point. This is possibly in keeping with the general consensus that Austria's growth will slip somewhat in 2008.

But when asked about the general situation of the Austrian economy 12 months looking forward, consumers were positive enough to push this component index to 15-also a record.

Conversely, Austrian consumers did not feel that it was currently the right time to make major purchases. This component index declined to minus 14 points, a decidedly pessimistic reading.

In a posting on the website of the Federal Chancellery on March 5, 2007, the government reported that unemployment declined "sharply" by 11.2 percent, year-on-year in February 2007.

AUSTRIA'S IMPROVING JOBS SITUATION PROVIDES A COMPETITIVE ADVANTAGE

The population growth rate for Austria is below the regional average, due in part to a birth rate of 9 per thousand inhabitants, which is lower than the average of 10 per thousand for Western Europe. Job creation has kept up with growth of the labor force in recent years, and it is likely that the situation will improve further in 2007. Unemployment is running about 4.4 percent, and this continues to buoy consumer confidence.

Austria's population reached 8.3-million people mid-2006, which amounted to 4.4 percent of Western Europe's 187-million inhabitants. According to data released by the Population Reference Bureau (PRB), Austria's population will reach 8.7-million by 2025. Also, according to that source, Austria is going to have a population of 9-million people in 2050.

The PRB revealed that a substantial 54 percent of Austria's population lived in urban areas during 2006, and that the country's population density is a comparatively moderate 256 people per square mile. In land area, Austria (32,378 square miles) is almost exactly the same size as the United Arab Emirates (UAE) (32,278 square miles), but the UAE has only 60 percent as many residents. The CIA's World Factbook estimates 15 percent of Austria's population will be birth to 14 years old in 2007, 67 percent 15 to 64, and 5 percent 65 years of age and over.

The CIA estimates the country's population growth rate at 0.77 percent (2007). And the United Nations Population Division says in 2050, 12 percent of Austria's population will be birth to 14 years old, while 47 percent will be aged 15 to 59, and 41 percent of the populace will be 60 years of age and over.