The introduction of vaccine passport requirements, social distancing measures, and, in some instances, curfews will likely prevent the need for full lockdowns, but MNCs will still see some consumer demand volatility. Executives should prioritize subregions with higher vaccination rates and should continue to monitor the epidemiological situation.
Overview
The Austrian government introduced a mandatory 10-day quarantine for unvaccinated individuals to curb the rise in COVID-19 cases. The Netherlands announced a three-week “partial lockdown” to reduce infection rates. Italy passed COVID-19 requirements for entry into venues and for public transport.
Our View
The reintroduction of COVID-19 measures to contain seasonal upticks in infections was largely expected, and despite the more stringent measures in the Netherlands, which involve curfews for nonessential businesses, full lockdowns remain highly unlikely. Governments across Western Europe have begun booster campaigns, which combined with social distancing measures, vaccine passports, and high vaccination rates will soften the economic impact of the measures. Business should still expect some demand volatility, as governments adopt regionalized strategies that target areas with relatively low vaccination rates. Given the already-high vaccination rates in the largest WEUR markets, the pace of the recovery should remain generally unaffected.
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