Tourism and other industries lost almost as much as they did during the initial lockdown
After a recovery in the third quarter, economic output in Austria fell sharply again at the end of the year, but not as massive as in spring 2020. In the fourth quarter, gross domestic product (GDP) was 4.3 percent below the previous quarter in which it was between the lockdowns Had given a plus of 12.0 percent. Year-on-year, GDP fell by 7.8 percent, after a 4.2 percent decline in the third and 14.2 percent decline in the second quarter, said Wifo on Friday.
According to the Wirtschaftsforschungsinstitut (Wifo), the restrictions in the second lockdown had a negative impact on consumer spending by private households and added value in the service sectors. Tourism, trade, traffic as well as the areas of entertainment and recreation recorded significant losses in the fourth quarter, according to Wifo. In contrast, the construction and industrial sectors were more stable.
In trade, accommodation, gastronomy and transport, value added fell by 19.7 percent in the last three months of 2020 compared to the previous quarter. In the case of other services, which include personal services such as hairdressing, art, entertainment and recreation, the decline was 25.2 percent, the Wifo determined in its flash estimate for the fourth quarter. In the third quarter, these two areas had increased by 32.9 and 39.2 percent respectively, but between April and June they had shrunk by 21.2 and 26.9 percent respectively.
