Going into the Covid-19 pandemic, Austria was on a strong footing, with growth above the eurozone average and unemployment rates falling. Public debt was also on the decline.
In 2020, the Austrian economy contracted by 6.6%, roughly in line with the eurozone average, according to Statistics Austria, the country’s official statistics office. However, economic recovery in 2021 is expected to be more sluggish than the rest of the eurozone, due to the weak performance of the tourism sector. Fitch Ratings forecasts growth of 2.5%, compared to 4.7% for the region, with Austria’s economic output only reaching pre-pandemic levels in early 2023.