Small county with small market monopolized by few politically connected local players in every major sector of the economy who sometimes enjoy regulatory protectionism from the government to keep foreign competitors out and turn a blind eye on racketeering practices.

That's how everything, including stuff made in Austria is more expensive than the same stuff sold in Germany even though wages are lower.

Same issues like in other small markets like New Zeeland except Austria being an EU member should have more pressure from free trade competition but that doesn't always work in favor of the consumers.