The Czech economy experienced a year-on-year decline of 5.6 percent in 2020 - the most significant decrease in the history of the country.
The record drop can be attributed to trade, services and movement restrictions introduced to slow the spread of the coronavirus. According to the economists, the effect of the second (autumn) wave of the pandemic was smaller than during the spring - mainly thanks to the industry.
Analysts predict that the Czech GDP should return to growth this year, which they estimate at around three percent. In 2019, it rose by 2.2%.
Year-on-year, the Czech economy weakened in every quarter of 2020. In Q2, GDP fell by more than ten percent. However, the overall decline of 5.6% is still lower than estimated by experts who assumed a drop of 6-7%. It is possible that this is due to the easing of measures before Christmas that allowed for an increase in sales in retail and services.