Czech economic growth dropped by 2.2 percent year on year in January through March and by 3.6 percent quarter on quarter, a preliminary Czech Statistical Office estimate shows. It marks the steepest decline since the 2009 global financial crisis.
The results were significantly affected by the global coronavirus pandemic and the associated restrictive measures. In addition to a significant reduction in foreign demand, corporate investment and household consumption also feel.
Czech National Bank Governor Jiří Rusnok told CNN Prima News the preliminary data confirmed the bank’s outlook for the economy.
Analysts expected a similar development due to coronavirus-related restrictions introduced in mid-March. In the last quarter of 2019, GDP grew by 2 percent year on year and rose by 0.5 percent quarter on quarter.