Geo-Political Circumstances and Economic Development

The division of Europe after World War II put considerable burden on the Austrian economy. With the economies of the two blocks moving in different directions and mutual trade remaining on a small scale Austria had lost many of her traditional export markets. Most severly affected were the Eastern regions of Austria, as considerable part of foreign trade is with neighbouring countries. The political upheavals in Eastern Europe may shift Austria's foreign trade and tourism to some extent back towards pre-war patterns.