Austrian central bank keeps growth outlook stable but sees Omicron risk

  • 12/22/2021
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VIENNA, Dec 22 (Reuters) - Austria"s central bank on Wednesday kept its growth forecast for next year barely changed but did not factor in the possible effects of the Omicron COVID-19 variant, which it said represent a "significant downside risk". The country"s conservative-led government is meeting on Wednesday morning to discuss what measures, if any, need to be taken in anticipation of a surge in infections from the Omicron variant that is expected later in January. The variant has reached Austria but fewer than 1,000 cases have been confirmed. Austria"s fourth national COVID-19 lockdown, which lasted three weeks between November and December, delayed some household spending but barely affected employment, the Austrian National Bank (ONB) said in its half-yearly economic forecasts, predicting gross domestic product growth of 4.9% this year. "With the phasing out of the negative effects of the fourth wave of COVID-19 and the resolution of global supply bottlenecks, the economy will recover quickly and grow by 4.3% in 2022," the central bank said in a statement, barely changing its previous forecast of 4.2% published in June. It warned, however, that its forecasts did not address the main question facing Austria"s economy. "Possible negative effects of the recently discovered Omicron variant are not included in the forecast, but represent a significant downside risk," the central bank said.

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