Austria's GDP is expected to fall by 5.25 percent in 2020 as a result of the coronavirus pandemic and measures taken to curb its spread, the Austrian Institute of Economic Research (WIFO) said on Thursday
VIENNA (Pakistan Point News / Sputnik - 23rd April, 2020) Austria's GDP is expected to fall by 5.25 percent in 2020 as a result of the coronavirus pandemic and measures taken to curb its spread, the Austrian Institute of Economic Research (WIFO) said on Thursday.
According to WIFO, the pandemic will affect the national economy harder than the global financial crisis in 2009, when the drop in economic output was 3.8 percent.
"In the wake of the COVID-19 pandemic and the measures taken to contain it, the international, and also the Austrian economy, was plunged into a sharp downturn in March this year. A global recession of unprecedented magnitude and synchronicity is expected in the second quarter. For 2020, WIFO, therefore, expects Austria's economic output and employment to decline by 5.25 percent and 1.75 percent, respectively, and the unemployment rate to rise to 8.75 percent," the institute said in a statement.
At the same time, under a more pessimistic scenario, assuming a steeper downturn in international economic activity in 2020, the country's GDP would plunge by 7.5 percent, and employment by 2.5 percent, with the budget deficit widening to 10 percent of GDP, the institute added.
"In this [optimistic] scenario, economic output and employment would fall by 7.5 percent and 2.5 percent respectively in 2020, the unemployment rate would rise to 9.1 percent and the budget deficit to some 10 percent of GDP," WIFO stated, adding that with curbing the pandemic and relaxing restrictions, economic life should become more dynamic again.
Austria has begun a step-by-step cancellation of the restrictive measures that have been in place due to the coronavirus pandemic since April 14. Small shops have been allowed to reopen if they ensure that customers keep a safe distance and wear masks. All other stores, as well as the service sector, will begin to open on May 1.
In addition, restaurants in the republic will resume working on May 15, while large-scale public events will remain banned at least until the end of August.
So far, Austria has confirmed nearly 15,000 cases of the disease, including 522 deaths and over 11,500 recoveries.
