Czech economy shrank sharply in second quarter

GDP posts record fall of 10.7% year-on-year in Q2 amid the pandemic. Czech economy is now officially in recession, after the GDP declined for the second consecutive quarter.

This is a better result than many analysts expected. According to them, the Czech economy should show quarter-on-quarter growth in Q3.

According to the Czech Statistical Office, the decline was mainly caused by a major drop in foreign demand, lower household spending and lower investment activity. Reduction or closure of operations in industry, trade, transport, hospitality and accommodation sectors all had a significant negative effect.