Due to the outbreak of the coronavirus pandemic at the beginning of 2020 and in particular its spread outside China, the eurozone is expected to grow around -0.5% in 2020. For Austria the Erste Group research department also expects further slowing of real GDP growth to 0.9% in 2020, before a potential recovery in 2021. Overall, export demand is expected to remain weak, so that domestic demand continues to be the main driver of growth, even though a slowdown in the labour market could become apparent. Inflation is expected to remain below the European Central Bank (ECB) target and reach 1.4% for Austria and 0.9% for the eurozone as a whole in 2020.