Bank Austria's economic indicator fell to minus 2.5 points in November
The second lockdown interrupts the recovery of the Austrian economy. In November, Bank Austria's economic indicator fell to minus 2.5 points. It was the largest monthly decline since the first month of lockdown in April. According to Bank Austria chief economist Stefan Bruckbauer, Austria is heading for another recession over the winter, but the slump is unlikely to be as severe as in the first half of 2020.
For the fourth quarter of 2020, Bank Austria expects a significant decline in gross domestic product (GDP), which is determined by developments in the service sector. For 2020 as a whole, the money house is assuming a GDP decline of more than seven percent. After a weak start to the year, there should be a rebound in spring 2021, which should turn into a sustained, strong recovery in the second half of the year. “This means that the Austrian economy should be able to achieve economic growth of 3.1 percent in 2021 and as much as 5.2 percent in 2022,” said Bank Austria economist Walter Pudschedl in a broadcast. You should be open to the pre-crisis level in the first half of 2022.
The corona development remains a major economic risk. The current high propensity to save among Austrians and the uncertainty among consumers are likely to slow down the recovery. In addition, a real wage increase is not expected in the coming year, and loss of income due to short-time work or unemployment would be a burden. Companies are underutilized and have liquidity problems.
