Vienna: Lockdown Covid-19 Austria will have a “very small” effect on economic output this year but the wave of the fourth infection is currently possible to cause damage next year, the head of the top economic think-tank tank on Tuesday.
Austria entered the fourth full lock of Covid-19 on Monday, the first Western European country to take drastic steps in this fall in the face of infection soaring and shrinking intensive care capacity.
Restaurants, cafes, bars, and non-essential shops are closed except for the take-away business for at least 10 days and no more than 20, the government said.
“In 2021 more or less in the bag,” Gabriel Felbermayr, Head of Wifo Think-Tank, which produces the forecast of gross domestic product for the government, told a press conference.
The last GDP prediction of Wifo for this year is 4.4%.
“If November and December are worse, there might be a revision.
It will be within reach.
It will be very, very small,” he said, adding that a week minus costs around 800 million euros ($ 901 million) in terms of missing economic output, up Up to 1.2 billion euros closer to you to Christmas.
This wave of infection can hurt Austrian winter tourism in particular, said FelberMayr, because infection is also high in Germany and the Netherlands, where many tourists arrive.
Direct tourism account is around 5% of GDP.
Ski lifts are now open but the hotel is closed for tourists.
“Year 2022 of course began weakly,” said Felbermayr.
The last WIFO predicted 4.8% GDP growth for next year.
“It is clear that the current developments will generate a downward revision.
How big it will of course depend on what the rebound effect is,” he said, adding that GDP growth must remain above 4%.
($ 1 = 0.8878 euro)
Covid-19 wave will now hurt the Austrian economy next year -Wifo head
