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Tag: czechia gdp

  • Erste Group expects an economic upturn for CEE countries in 2021

    Erste Group expects an economic upturn for CEE countries in 2021

    The corona pandemic caused the CEE economies to enter into recession in 2020, although that economic contraction has turned out to be less severe than had been originally assumed.

    While the impact on Serbia was comparatively mild with a GDP decline of -1.1% in 2020, the Croatian economy plunged by -8.5% compared with 2019.

    In Austria, the GDP decline in the past year was also comparatively strong at -7.2%.

    According to preliminary data, the GDP downturn in 2020 amounted to -5.6% in the Czech Republic, -5.2% in Slovakia, -5.1% in Hungary and -3.9% in Romania.

    Erste Group sees a turnaround in 2021, with the strongest GDP growth expected in Hungary (+5.5%) and Serbia (+5.0%).

    The economies of Croatia, Romania and Slovakia should all also grow by more than 4%, with the Czech Republic very close behind with an expected rise of 3.9%.

    The GDP dynamic that some CEE countries evidenced in the final quarter of 2020 gives reason for optimism: the Hungarian, Slovak and Romanian economies unexpectedly posted growth in Q4 2020 compared with the preceding quarter.

  • The Czech economy recorded a record decline in the second quarter

    The Czech economy recorded a record decline in the second quarter

    The Czech economy contracted by 10.9% in the second quarter of 2020, the most severe decline in the country’s history, according to revised data released by the Czech Statistical Office.

    Czechia’s GDP is expected to decline between 6% and 8% this year, followed by an advance of 3.9% next year.

    Amid the pandemic crisis, the deficit target has been set at 500 billion Czech crowns, or 8.8% of GDP, from the initial target of 40 billion Czech crowns, but the budget is on schedule for a deficit of 400 billion Czech crowns.

    Monthly income from employment decreased by 7.1%

    The average monthly income from employment reached CZK 34.142 in the Q2 and it decreased in real terms by 7.1%, compared to last quarter.

    In the year-on-year comparison it was 7.4% down.

    The significant decrease of income from employment reflected shutdown of production and closure of some (business) establishments/premises due to coronavirus pandemic.

  • Czechia GDP decreased by 3.6% in 1st quarter of 2020

    Czechia GDP decreased by 3.6% in 1st quarter of 2020

    According to a preliminary estimate by The Czech Statistical Office, the gross domestic product decreased in the Q1 2020 by 3.6%, quarter-on-quarter, and by 2.2%, year-on-year.

    The results of the Czech economy in the first three months of 2020 were significantly influenced by the global coronavirus pandemic and government restrictive measures related to it.

    The gross domestic product (GDP) adjusted for price effects and seasonally adjusted decreased in the Q1 2020, according to the preliminary estimate, by 3.6% compared to the Q4 2019 and compared to the Q1 2019 it decreased by 2.2%.

    The negative y-o-y GDP development was caused mainly by a decrease in external demand and by lower capital formation. Increasing expenditure of the general government sector had a positive influence.

    The decrease of the gross value added formation was influenced the most by the development in manufacturing and in a group of economic activities of trade, transportation, and accommodation and food service activities.

    Employment remained unchanged in the Q1 2020, compared to the previous quarter; when compared to the corresponding quarter of the previous year, it decreased by 0.5%.