Effects of the Second Lockdown in Austria

Recent WIFO Research Brief on the Macroeconomic Development During the COVID-19 Crisis
The economy is expected to shrink by 7.7 percent in 2020, instead of 6.8 percent as forecast in October. 0.6 percentage points of this additional slump are attributable to the hotel and restaurant sector, the rest mainly to (voluntary) consumption cuts in other sectors. In 2021, GDP is expected to expand by only 2.8 percent instead of 4.4 percent according to the WIFO forecast of October.

The GDP contribution from hotels and restaurants, however, will increase by 0.3 percentage points. While tourism should benefit from the current tightening next year, there will be negative consequences for the economy as a whole.