wifo: Current Covid-19 wave will hurt Austria’s economy next year -Wifo head – Times of India

VIENNA: Austria’s Covid-19 lockdown will have a “very small” impact on financial output this year however the present fourth wave of infections will most likely inflict harm next year, the head of a prime financial assume-tank stated on Tuesday.
Austria went into its fourth full Covid-19 lockdown on Monday, the primary western European nation to take the drastic step this autumn within the face of surging infections and dwindling intensive-care capability.
Restaurants, cafes, bars and non-important outlets are closed aside from take-away enterprise for at the very least 10 days and not more than 20, the federal government says.
“The year 2021 is more or less in the bag,” Gabriel Felbermayr, head of assume-tank Wifo, which produces gross home product forecasts for the federal government, advised a information convention. Wifo‘s final predicted GDP growth for this year was 4.4%.
“If November and December are significantly worse, there could be a revision. It would be within range. It would be very, very small,” he stated, including {that a} week of lockdown prices about 800 million euros ($901 million) in misplaced financial output, rising to as much as 1.2 billion euros the nearer you get to Christmas.
This wave of infections might hurt Austrian winter tourism specifically, Felbermayr stated, since infections are additionally excessive in Germany and the Netherlands, from the place many vacationers arrive.
Tourism accounts immediately for about 5% of GDP. Ski lifts at the moment are open however lodges are closed to vacationers.
“The year 2022 is of course beginning weakly,” Felbermayr stated. Wifo final predicted 4.8% GDP development for next year.
“It is clear that the current developments will result in a downward revision. How big it will be will of course depend enormously on what rebound effects there are,” he stated, including that GDP development ought to stay above 4%. ($1 = 0.8878 euros)

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