The Czech Republic’s economy shrank at a record pace in the second quarter, mainly due to the disruption caused by the coronavirus, or Covid-19, pandemic, preliminary figures from the Czech Statistical Office showed on Friday.
Gross domestic product decreased 8.4 percent from the first quarter, when it fell 3.4 percent. Economists were looking for a more severe decline of 12.9 percent.
Two consecutive quarters of GDP decline qualifies as a technical recession. The economy was last in recession during the whole of 2012 and early 2013.
On a year-on-year basis, GDP dropped 10.7 percent in the second quarter after a 2 percent slump in the first three months of the year. Economists had forecast a 14.7 percent decline.
The negative year-on-year GDP development was caused mainly by a marked decrease in external demand and by lower household consumption as well as investment activity, the statistical office said.
In the second quarter, the gross value added (GVA) decreased in almost all economic activities of the national economy, with a markedly negative influence on the GVA coming from industry and a group of economic activities of trade, transportation, and accommodation and food service activities.
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