June 26, 2020 / 8:33 AM / 2 months ago

Austrian economy to shrink by 7% this year, won't hit pre-crisis level in 2021 - Wifo

June 26 (Reuters) - Austrian economic output will likely not reach its pre-crisis level by the end of 2021 after experiencing a short but deep recession this year due to the coronavirus pandemic, economic institute Wifo said on Friday.

The Vienna-based think tank, which compiles data for the government, expects gross domestic product to shrink by 7% this year - the steepest decline since World War Two - before growing by 4.3% next year.

“The low point has already been passed and the recovery phase has started, but there is still a lot of uncertainty about how things will pan out,” Wifo said, adding this particularly applied to how the pandemic develops and what countermeasures will be taken.

Additionally, the IHS institute on Friday forecast that the Austrian economy would contract by 7.3% this year and expand by 5.8% in 2021 as long as there is not a big second wave of coronavirus infections. (Reporting by Thomas Seythal in Berlin Editing by Michelle Martin)

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