The Czech economy shrank by a historic margin in the second quarter after COVID-19 thrust the country into lockdown.
According to a preliminary estimate from the Czech Statistical Office, the GDP contracted by 10.7 percent year-on-year and by 8.4 percent quarter-on-quarter. The decline is the worst on record in the country’s history.
The negative year-on-year GDP development was caused mainly by a marked decrease in external demand and lower household consumption and investment activity. The gross value added (GVA) decreased in almost all economic activities of the national economy. A markedly negative influence on the GVA decrease came from industry and a group of economic activities of trade, transportation, and accommodation and food service activities, according to the CZSO.
Currently, according to analysts, it can already be observed that the economy is rebounding from the bottom.
Due to coronavirus, the government took measures to prevent the spread of the virus in March. It restricted movement and travel, association, business, culture, sports, schooling, and other activities. Some companies closed because of this. In mid-May, restrictions were loosened as the situation improved.