Recovery of the Austrian economy following the COVID-19 crisis can take up to three years
Economic recovery after shutdown could take up to three years
The coronavirus pandemic poses an enormous challenge for the national and international economy. Despite the measures taken by the Austrian government, the consequences of the lockdown and partial suspension of global trade flows will be felt for a long time. According to a new study, the economy could take up to three years to recover.
Researchers from IIASA (International Institute for Applied Systems Analysis), the Vienna University of Economics and Business (WU) – Institutes for Macroeconomics and Ecological Economics, the Austrian Institute of Economic Research (WIFO), and the Institute for Advanced Studies (IHS) have created different scenarios of the effects of economic measures to tackle the COVID19-crisis in Austria using a macroeconomic model developed at IIASA. The team’s results clearly show that it could take up to three years for the Austrian economy to recover from the shock caused by the restrictions and return to its original, pre-COVID-19 trajectory.
IIASA Policy Brief