The pandemic is causing Austria
The corona crisis plunged Austria into a historic recession. Economic recovery is not in sight for now.
The pandemic is causing Austria to drift into the deepest recession since World War II. The gross domestic product of the Alpine country collapsed in the second quarter compared to the previous year by 12.8 percent, as estimates by the Economic Research Institute show. The reason for the historical decline is the consequences of fighting corona. The lockdown brought life in large parts of Austria to a standstill for just under seven weeks. Consumer demand slumped.
Tourism, transport and trade are particularly affected
“The decline of this magnitude proved to be unique in the calculations of economic activity since the Second World War; ” the Wifo summarizes. In the first three months; the drop in economic output was 2.8 percent.
Tourism, transport and trade are particularly affected. But also the service sector and the cultural sector with art and entertainment suffer massively. Germany’s neighbour; like the rest of the European Union; is experiencing enormous losses in domestic industry and export demand. Because a second corona wave is becoming increasingly probable; no recovery is in sight for the Austrian economy.
The sectors of communication and information turn out to be winners of the crisis. Lending and insurance, public administration and real estate are also resilient in the crisis.
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