VIENNA, Dec 11 (Reuters) - - Austria’s central bank left its forecast for the country’s economic slump this year little changed on Friday at 7.1% of economic output and predicted a weaker recovery next year in light of the current second wave of coronavirus infections. In its previous semi-annual economic forecast, in June, the Austrian National Bank said gross domestic product would shrink by 7.2% in 2020 as long as there was no second wave. If that second wave was smaller than the first, it said at the time, GDP would shrink by around 9.2%. Since then, a second wave far bigger than the first has hit the country, with daily infections having risen to nine times the first wave’s peak, forcing the government to introduce a second lockdown that ended on Monday. “Austria’s economy recovered from the deep economic slump faster than expected over the summer months. The current second wave of infections is, however, causing a renewed slump in the fourth quarter. But that slump should only be about half as big as that at the start of the year,” the ONB said in a statement. The ONB added that although coronavirus vaccinations should begin in Austria at the start of next year, the vaccination campaign would not be completed in early 2022. The pandemic will weigh on economic activity in the first quarter of next year and to a lesser extent the second quarter. The ONB assumed restrictions related to the coronavirus would be lifted step by step in the first half of next year, it said. (Reporting by Francois Murphy, editing by Larry King)
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