According to the EU economy preview, which was issued by the European Commission, the economy in European are should- due to the Corona virus- in this year decrease for 7,7% and in all EU for 7,4%. However next year an increase of 6,3% in European area and 6% in all EU is expected. For Austria the preview for the GDP decrease for 2020 is 5,5%, which will then in 2021 turn to an increase of 5%.
This economy decline is expected in the first half of this year, precisely in the second quarter. Long term economy losses, as for instance insolvency cases, should be prevented by the financial support of the governments and by the liquidity measures of the European Central Bank ( EZB ).
The unemployment rate should grow to 9,5% in European area ( EU 9%) , what means an increase of 2%, which should in 2021 again decrease to a total rate of 8%. The debt rate will go up the first time from 2014, from 86% (EU 79,4% ) in 2019 to 102,75% ( EU 95% ) in 2020. In 2021 this rate should go down again for 4%.
The premise for the above preview is that the gradual annulment of the restrictive measures will begin from May 2020 and that the pandemic will be in this way limited.
