Lockdown was eased on Monday. For the business sector, however, the situation remains fraught. Will the economic situation improve with the roll-out of COVID-19 vaccinations? Jörn Kleinert, an economist at the University of Graz, is optimistic.
“I am confident that vaccination will heal the economy. Perhaps not immediately, but over the next year, or maybe two years. The economic downturn is largely the result of restrictions keeping vendors and consumers apart. These restrictions will be lifted once the vaccination campaign is complete.
Of course, the large scale of the changes that have taken place means that it will take some time for everyone to get back together again. A substantial wave of bankruptcies is still anticipated. At this stage it is difficult to predict how many businesses will be unable to survive, and how difficult it will be to close the gap. The major upheavals and disruptions in many supply chains initially anticipated have not in fact materialised. Overall the manufacturing sector has proved to be very robust. This is partly due to the numerous economic policy support measures that have been introduced. But these also constitute a promise for the future. The funds have been borrowed and must be paid back.”
Clip (German only)