The number of foreign investments in Austria rose in 2024 by 31 percent from 80 to 105 projects. The number of projects thus stabilized at the 2022 level. Austrian companies invested primarily in Germany, the UK and Bosnia. The most important origin countries for investments into Austria were Germany, Switzerland and the USA, according to a study by the US consulting firm EY.
Austria benefited from its geostrategic location in the heart of Europe and, as part of the DACH region, is a natural expansion market for companies from Germany and Switzerland, says EY. “Austria was particularly attractive for technology-oriented investments in the areas of IT services, renewable energies and Industry 4.0. International companies appreciate the combination of innovative power, market access and stability,” explained Gunther Reimoser of EY Austria.
Despite More Investments, Not More Jobs
Despite rising investments, unfortunately no additional jobs were created. “This is mainly because many investments flow into technology-intensive industries such as IT, renewable energies and specialized services. These sectors increasingly rely on automation and digital solutions, which require less personnel,” analyzes Reimoser.
In Austria, foreign investment projects created 2,312 jobs last year—2023 saw 2,345, and the year before even 2,913 jobs. Conversely, Austrian companies created 2,095 new jobs through investment projects abroad last year.
Europe-wide Decline in Projects
Europe-wide, a total of 5,383 investment projects by foreign investors were announced last year, a decline of five percent. France remained top in the Europe ranking—despite a 14 percent drop to 1,025. The UK took second place with projects down 13 percent to 853. Germany ranked third with 608 projects and a 17 percent decline—its lowest level since 2011.
The largest investors in Central and Eastern Europe remained German companies, with the number of German projects in Eastern Europe even rising by 22 percent from 176 to 214. They were followed by US companies, which however reduced their engagement in Central and Eastern Europe last year: down 17 percent from 164 to 136 projects.
Auto Industry Remains Job Engine
The digital sector—e.g. digital start-ups, software developers, online platform providers—plays a significantly smaller role as a job engine than in the years up to and including 2022, according to an EY release. Already in 2023 the number of jobs created fell by 37 percent; in 2024 it dropped another 36 percent. “Despite a significant decline of around one fifth, the automotive/vehicle industry, which also includes aerospace, remains the most important job engine in Europe. Investments by business service providers last year, however, led to significantly more new positions than the year before,” the US consultant calculated on Friday.
