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Austria’s economic relations with the Asia-Pacific region

Asia and the Pacific

Asia (excluding CIS-Asia states)

Asia and the Pacific, which accounts for around 60 percent of the world's population and almost 50 percent of global economic output, is one of the fastest-growing regions in the world. Despite a difficult year for the global economy in some respects, the Asia-Pacific region was able to maintain this momentum in 2024. According to a forecast by the International Monetary Fund, the region will grow by 4.5 percent in 2025, contributing around 60 percent to global growth. In addition, its global economic importance continues to grow through political and economic cooperation such as the Regional Comprehensive Economic Partnership (RCEP), which came into force in January 2022. This trade agreement brings together 15 countries (Australia, Brunei, China, Indonesia, Japan, Cambodia, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam), covers about 30 percent of the world's population, and represents the world's largest trading bloc, accounting for about one-third of global economic output.

With a share of 11.1 percent of total Austrian trade in goods in 2024 (+0.3 percentage points compared to the same period last year), the Asia-Pacific region remains the second most important trading partner after Europe. This region accounts for a considerable 14.9 percent of total Austrian imports worldwide. Exports, measured in terms of total Austrian export volume, also continued to show positive momentum at 7.4 percent. The most important sales markets remain China (2.8 percent of total exports), Japan (0.8 percent), India (0.7 percent), South Korea (0.6 percent), and Australia (0.5 percent). In 2024, Austrian exports showed an upward trend, particularly to Malaysia (+24.4 percent) and China (+4.7 percent) compared to the same period last year.

China occupies a special position in the region for the Austrian economy. With goods imports of over 15 billion euros and goods exports of 5.3 billion euros, China is not only Austria's most important trading partner in Asia, but also the second most important overseas market after the US. Total trade in goods with China increased by around 3 percent compared to 2023.

In addition, there is ASEAN (Association of Southeast Asian Nations), a bloc that has been particularly impressive in recent years with its dynamic growth figures. Alongside the US and China, ASEAN is one of the European Union's largest trading partners outside Europe and is also becoming increasingly important for Austria. Around 1.8 percent of Austrian trade in goods is accounted for by this region. The Austrian export economy can also benefit from EU trade agreements with Vietnam and Singapore.

India, Australia, and New Zealand should also be mentioned. With growth forecasts of 6.2 percent and 6.3 percent in 2025 and 2026, respectively, India is contributing significantly to global economic growth. In 2024, it was Austria's sixth most important overseas export destination after the US, China, Mexico, Japan, and Canada, with growth of over 2.4 percent compared to the previous year. Austrian export figures to Australia and New Zealand in 2024 also reflect their strong economic importance in the Oceanic region, amounting to around 1.5 billion euros.

In recent years, the global economic situation has been marked by geopolitical uncertainties and increasing economic fragmentation, while the Asia-Pacific region has established itself as a dynamic center of foreign trade. In this new environment, there are numerous new export opportunities for Austrian companies, including to China (6.2 billion euros), India (1.1 billion euros), and Japan (1.3 billion euros), as well as Southeast Asia and Oceania (3.3 billion euros). Austria's presence at EXPO 2025 in Osaka offers a strategic opportunity to further deepen economic relations with Japan and the entire Asia-Pacific region. The Austrian pavilion is positioned under the motto “Austria makes sense” and aims to raise Austria's profile as a location for innovation, the environment, and technology. Austrian companies, start-ups, and research institutions will have the opportunity to present themselves internationally, establish new business contacts, and expand existing cooperation. Furthermore, proven instruments such as joint economic commissions and visiting diplomacy will be used, which also contribute to strengthening bilateral economic relations.

The EU's free trade agreement with New Zealand, which came into force on May 1, 2024, is providing impetus for economic relations. The agreement will reduce existing trade barriers, in particular through the almost complete elimination of tariffs on goods (including motor vehicles and components, machinery, chemicals, pharmaceuticals, wine, chocolate, and cheese) and improve access to services and public procurement. New Zealand's participation in the EU's Horizon Europe research and innovation program has also been approved. According to the European Commission, the free trade agreement is expected to boost bilateral trade by up to 30 percent within a decade. EU exports could increase by up to 4.5 billion euros annually and EU investment in New Zealand could grow by up to 80 percent. For Austrian companies, the greatest growth opportunities lie in the machinery and supply sectors, plant engineering, and the food sector.

Further negotiations on EU free trade agreements with countries in the Asia-Pacific region are currently taking place with the Philippines (resumption in March 2024), India (resumption in June 2022), Indonesia (resumption in July 2016), Thailand (since March 2023), and Malaysia (resumption in January 2025).

In addition to economic partnerships, cooperation in the area of skilled workers with selected Asian countries is also coming to the fore. With this in mind, skilled worker agreements have already been signed with the Philippines (2023) and Indonesia (2024) to counteract the shortage of skilled workers in Austria.

On May 21, 2025, Minister of Economic Affairs Wolfgang Hattmannsdorfer signed a new Memorandum of Cooperation in Industrial Research, Technology, and Innovation (MoC) - non-accessible document) for deeper cooperation through the exchange of know-how in order to promote economic growth and overcome current challenges. The intensification of bilateral economic and trade partnerships through respective strengths in research and innovation is intended to contribute to shaping the technologies of the future and achieving sustainable development goals. A working group is to begin cooperation in the following areas: applied, industry-oriented research; start-ups & scale-ups; green technologies; hydrogen.

Contact

Asia and the Pacific: wirtschaftsbeziehungen-asien-pazifik@bmwet.gv.at