The mood among Austrian companies remains sceptical. The WIFO business climate index continued to be negative in February at –11.0 points (seasonally adjusted), almost unchanged from the previous month.

Economic activity (as measured by the WWWI) in the second week of February (calendar week 6) was shaped by the easing of restrictions and the opening of commerce beginning 8 February 2021: relative to the previous week (the last "hard" lockdown week), activity improved significantly by 4 percentage points to –9 percent year-over-year.

The latest annual report of the Austrian Institute of Economic Research was published on 19 February 2020 and is now also available in digital form (in German). In 2020, WIFO analyzed the effects of the COVID-19 crisis, made proposals for economic policy measures and pointed out ways out of the crisis.

The domestic economy exhibited volatile development in 2020: Following a slump in spring and a recovery during the summer, economic output in the fourth quarter 2020 declined compared with the previous quarter. Leading indicators point to continued sluggish momentum: the WIFO Business Climate Index fell in January compared with the previous month and consumer confidence remains low.

A recent WIFO study by Margit Schratzenstaller and Thomas Leoni, commissioned by the Advisory Council for Economic and Social Affairs, sheds light on the economic effects associated with reductions in non-wage labour costs and examines selected international reforms implemented in the recent past.

WIFO's tourism analysis for the 2020-21 winter season shows a lockdown-related slump in demand of around 90 percent in the early season. 83 percent fewer overnight stays are expected for the entire winter season.

In a recent article of the WIFO-Monatsberichte (monthly reports) by Simon Loretz, Hans Pitlik and Margit Schratzenstaller examine fiscal measures against the COVID-19 crisis in light of the federal budget 2021 and Medium-term Financial Framework 2021 to 2024.