Austria: Leaves estimates for the year almost unchanged, but expresses fears for Omicron

The Austrian central bank kept growth forecasts for next year virtually unchanged, but did not take into account the possible effects of the Omicron mutation, which it described as a “significant downside risk”.

The government is meeting to discuss what action will be taken if necessary, in view of the increase in cases of the Omicron mutation, which is expected later in January.

The mutation has reached Austria, with less than 1,000 cases confirmed.

Austria’s fourth lockdown, which lasted three weeks between November and December, delayed some household spending but did not affect employment, the central bank (ONB) said in its half-yearly economic forecast, expecting GDP growth of 4.9%. for 2021.

“With the gradual elimination of the negative effects of the fourth wave of the coronavirus and the resolution of supply problems, the economy will recover quickly and grow by 4.3% in 2022,” the central bank said, compared to an initial estimate of 4.2%.

She warned, however, that her forecasts did not address the key question for the Austrian economy.

“The potential negative effects of the Omicron mutation are not included in the forecast, but represent a significant downside risk,” the central bank said.