ING’s latest economic and financial analysis on the economic costs of Covid-19 predicts the Czech Republic will show negative GDP for full-year 2020. The volatility of the Czech crown will remain “extra elevated”, it says, given the positioning-related moves in the currency and the risk of central bank interventions.
The government’s recent measures to prevent the spread of the novel coronavirus have impacted around 20 percent of businesses in the country, a lightning survey conducted by the Czech Chamber of Commerce (HK ČR) has found. Most expect sales revenues to drop by 40 to 60 percent. Those hardest hit are the self-employed and small businesses.
The Czech government and central bank have announced further measures to offset the impact of the coronavirus on large firms, small businesses and households. While economic growth is certain to drop steeply in the near term, the authorities and experts note this country is better prepared than most to weather the storm.
There is a sufficient quantity of food reserves in the Czech Republic, with food processors having prepared plans and supply routes secured, according to the Ministry of Agriculture. Prime Minister Andrej Babiš has asked Czechs to stop panic buying in light of the COVID-19 pandemic, with the Agriculture Ministry stressing that people do not need to horde food. However, in some goods, such as pork, self-sufficiency is not present, the Czech News Agency reports.