Czech industry records historic drop in output

Production plunged by a record 33.7% in April compared to the previous year. Automakers were hit the hardest - their output fell by 80%.

It comes as no surprise as all three major car maker's factories (Škoda, Hyundai and TPCA) were closed due to the coronavirus pandemic. Even though May's numbers should look better according to the analysts, they predict Czech industry will continue to perform poorly for the rest of the year. Consumer activity both at home and abroad is expected to stay lower.

Decline in exports of cars and car parts was the main reason for the poor performance of Czechia's foreign trade in April. As a result of the pandemic and related measures, foreign trade ended in a 26,9 billion crown deficit - the lowest since the country's joining the EU in 2004.

The construction industry recorded better results as its output in April was 4.6% lower than the year before. The coronavirus epidemic had a negative impact mainly on building construction, which includes construction of flats, offices or warehouses. On the contrary, civil engineering, which mostly includes transport infrastructure, grew by 13.5% compared to the previous year.