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Fourth COVID-19 Wave Slows Strong Upswing. Economic Outlook for 2021

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  • Stefan Schiman

Abstract

Value added in Austria grew significantly in the second quarter 2021, especially in the crisis-hit sectors. However, growth weakened again with the increase in the incidence of infections from August 2021. The renewed COVID-19 wave will again dampen the catch-up process in certain service sectors in the fourth quarter. The economic upswing is, hence, heterogeneous across sectors, but it is extremely strong overall. The labour market is also recovering rapidly but will suffer a temporary setback from the fourth COVID-19 wave. At the same time, inflation will continue to accelerate, while monetary policy – in line with the ECB's new strategy – will remain expansionary. The tax reform coming into force in 2022 is not taken into account in this forecast. The forecast period therefore only covers the year 2021.

Suggested Citation

  • Stefan Schiman, 2021. "Fourth COVID-19 Wave Slows Strong Upswing. Economic Outlook for 2021," WIFO Reports on Austria, WIFO, issue 11, October.
    • Handle: RePEc:wfo:repoau:y:2021:i:11
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    File URL: https://www.wifo.ac.at/wwa/pubid/68095
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    Cited by:

    1. Josef Baumgartner & Jürgen Bierbaumer & Sandra Bilek-Steindl & Benjamin Bittschi & Christine Mayrhuber & Stefan Schiman, 2022. "COVID-19 Pandemic, Supply Bottlenecks and Price Increases Shape the Economy. The Austrian Economy in 2021," WIFO Reports on Austria, WIFO, issue 7, May.

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