Second pandemic wave has milder economic effect but lasts longer

Labour market remains stable, impact on household consumption should be minimal, according to the IFP analysts.

Stricter lockdown rules were adopted in the second half of December.Stricter lockdown rules were adopted in the second half of December. (Source: TASR)

The second pandemic wave has had a more moderate impact on the economy compared with the first one. However, it lasts longer.

Everything you need to know about the Slovak business environment. For more details visit shop.spectator.sk.Everything you need to know about the Slovak business environment. For more details visit shop.spectator.sk.

The impact of the extended lockdown from late December to late February may amount to 1.1 percent of gross domestic product from 2019, according to analysts from the Institute of Financial Policy (IFP), running under the Finance Ministry.

Situation remains serious

If the measures had been lifted in late December to the same extent as in the early summer of 2020, the GDP would have risen by 3.5 percent in the first quarter of 2021 compared with the final quarter of 2020. If the measures were lifted only in late February, the GDP would remain the same.

The difference is created by the lockdown effect worth some €800 million, plus the impact during the last 11 days in December 2020 at €230 million, according to the IFP.

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