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Mercosur agreement opens up opportunities for Austrian industry

  • One of the world's largest trade agreements for an economic area of 770 million people
  • In 2024, Austria exported goods worth 1.3 billion euros to the Mercosur countries, but this currently accounts for only 0.7 per cent of total exports
  • Elimination of high import duties strengthens mechanical engineering, beverage industry and vehicle production
  • Upper Austria, Styria and Salzburg would benefit particularly from an agreement 
  • For Vorarlberg, Carinthia and Burgenland, trade with Mercosur is currently of little economic relevance
     

Analysis EU-Mercosur-agreement (PDF)

as of September 2025.

Home ownership has become more affordable again in Austria

  • Property prices have fallen by 3.5 per cent since 2022 - the 23.5 per cent increase in disposable household income over the same period has led to a significant improvement in the affordability of residential property  
  • However, property still costs around 30 per cent more than in 2008  
  • High demand for rental properties due to persistently high property prices continues to drive up rents at an above-average rate 
  • More favorable financing conditions led to a 54 per cent year-on-year increase in new property loans in Austria in the first half of 2025 
  • Forecast: property prices are rising again, but the increase will remain moderate for the time being

Analysis property prices (PDF)

as of August 2025.

Tariff shock: Regional impacts

  • On April 2, 2025, US President Trump announced the introduction of so-called "reciprocal" tariffs. There is the base rate of 10 percent, which applies to all U.S. trading partners. In addition, there is a country-specific import tariff, which is 10 percent for EU countries, for example. Overall, a minimum tariff rate of 20 percent will apply to imports from the EU for most goods in the future. On April 9, President Trump ordered that only the 10 percent flat rate for all countries except China would be applied for the next 90 days. The already fixed tariffs of 25 percent on steel and aluminum or motor vehicles will remain in place.
  • The USA is an important trading partner of Austria. In 2024, Austrian exports to the USA amounted to 16.2 billion euros, with machinery, automotive industry products and pharmaceutical goods being the main categories. This makes the United States the second most important export partner after Germany.
  • Imports from the USA to Austria amounted to 7.7 billion euros in the previous year, significantly below the export volume to the USA. This corresponds to an Austrian trade surplus of about 8.5 billion euros with the United States. The most important import goods are pharmaceutical products, motor vehicles and optical equipment.
  • Styria, Upper Austria and Vienna are responsible for more than two-thirds of Austrian exports to the USA. Burgenland has by far the lowest export volume. In the two industrial strongholds of Styria and Upper Austria, exports to the USA account for the highest share of regional economic output at 6.4 and 4.7 percent respectively.
  • Overall, we assume that the protectionist measures in the USA will push down domestic economic output by 0.25 percent, with Styria (-0.5 percent) and Upper Austria (-0.4 percent) feeling the effects the most.

Analysis Tariff shock from the USA (PDF)

as of April 2025.

Legal information

These publications do not constitute investment advice, investment recommendations, marketing communications, or financial analysis. In particular, they are not an offer or solicitation to buy or sell securities and do not constitute a solicitation to make such an offer. They are intended solely as initial information and are no substitute for advice based on the individual circumstances and knowledge of the investor.
It is an analysis based on publicly available economic data. Despite careful research and the use of reliable sources, no responsibility can be taken for completeness, correctness, timeliness and accuracy.

Any investment in securities involves risks. The value of the investment and the income from it may fluctuate suddenly and substantially and therefore cannot be guaranteed. There is a possibility that the investor will not get back the full amount invested, particularly if the investment is held for only a short time. In some circumstances, a total loss is also possible.

Possible (return) payments from the product may not protect investors against inflation risk. There can be no assurance, therefore, that the purchasing power of the capital invested will not be affected by a general increase in the prices of consumer goods. Figures and information on performance refer to the past and past performance is not a reliable indicator of future results.
Only in the context of an investment advisory service can UniCredit Bank Austria AG take into account the personal circumstances of the customer (investment objectives, experience and knowledge, risk appetite, financial circumstances and financial loss tolerance) and carry out a product-specific suitability test.

We would like to point out that the tax treatment depends on the personal or company circumstances of the investor and that the information on tax advantages is provided on the basis of the current legal situation, which may be subject to future changes and for which no information can be given as to whether they will be continued.

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