Austria remains stuck in international competitiveness. As in the previous year, Austria ranked 26th in the 2025 World Competitiveness Report by the IMD institute in Lausanne—this time out of 69 economies. Austria performed poorly in economic development and government efficiency, both at rank 40. It received good marks for its business environment and especially for infrastructure (rank 14).

This year, Switzerland claimed the top spot, followed by Singapore and Hong Kong. Denmark and the United Arab Emirates round out the top five. The USA, ninth in 2023, slipped to 13th; China is 16th, and Germany improved five places to 19th. The bottom five are Mongolia, Turkey, Nigeria, Namibia, and last-place Venezuela.

Austria scores near the bottom (64th) in tax policy, with very poor ratings for unemployment benefits regulations and legislative adaptability. The report also flags Austria’s rising deficit, slowing growth, drop in patent applications, increased murder rate, and declining population growth.

On the positive side, university enrollment is up, employment growth has accelerated, inflation has fallen, tourism revenues have risen, government subsidies have decreased, and water usage has become more efficient. Surveyed executives cite reliable infrastructure, a well-educated workforce, general education quality, a dependable legal framework, and political stability as Austria’s five greatest strengths.

The IMD emphasizes that governments today must “counteract fragmentation.” Countries with less socioeconomic and political polarization (e.g., Switzerland, Denmark, Sweden) achieve higher competitiveness. A strong currency also matters—it signals robust economic fundamentals, investor confidence, stable governance, and export industries that can withstand price pressure.