UPDATE 2-Austria to loosen lockdown, wary of pandemic's economic and social impact

* Conservative-led govt says infections not only factor

* Schools, non-essential shops, museums and zoos to reopen

* Bars, restaurants, cafes and hotels will remain closed

* Country's third coronavirus lockdown started on Dec. 26 (Adds detail)

By Francois Murphy

VIENNA, Feb 1 (Reuters) - Austria, wary of the social and psychological impact of coronavirus lockdowns, will cautiously loosen restrictions next week, letting non-essential shops and schools reopen, despite stubbornly high infection rates.

The country is currently in its third lockdown, which began on Dec. 26, with theatres, museums and most shops shut and restaurants and bars closed to all but take-away service.

Infections have fallen, but not by as much as the conservative-led government would like. Chancellor Sebastian Kurz said they remained roughly twice the "ideal" level but he would now be happy to avoid "explosive" growth.

"Epidemiologically the issue is clear. The safest course would be to remain in lockdown," Chancellor Sebastian Kurz told a news conference after discussions with scientific experts, influential provincial governors and opposition parties.

"But we know there is also children's need to go back to school, there is the necessity of doing everything to keep unemployment as low as possible and there are of course also the social and psychological aspects that must also be taken into account," Kurz said, adding that he was acting "cautiously".

The loosening will begin on Feb. 8, applying to all schools and non-essential shops including hairdressers, but not bars, cafes or restaurants. It will include switching to a nighttime curfew from 8 p.m. to 6 a.m. rather than the all-day restrictions on movement now in place.

Only pupils who have been tested will be allowed to attend lessons, with others able to join online. Tests will be carried out in schools and older pupils' classes will be split into separate groups.

Shop customers will have to wear FFP2 face masks - a higher standard than basic textile masks. Such masks are already required on public transport and in the essential shops that are open. Museums and zoos will also be allowed to reopen.

Kurz said Austria would also significantly tighten its "border regime" to prevent the arrival of new coronavirus variants. The so-called British and South African variants have been found there but the Brazilian variant has not. (Reporting by Francois Murphy; Editing by Andrew Cawthorne, Marguerita Choy and Nick Macfie)