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Czech Q2 economic contraction worse than estimated

The Czech Republic’s economy shrank more than expected in the second quarter, largely due to a slump in external demand as global trade was hurt severely by the coronavirus pandemic, latest data from the Czech Statistical Office (CZSO) shows. 

Price and seasonally adjusted gross domestic product decreased a record 8.7%, which was more severe a fall than the 8.4% decline estimated initially. The first quarter slump was revised to 3.3% from 3.4%.

Two consecutive quarters of GDP decline qualify as a technical recession, which is a first in the country since 2009. On a year-on-year basis, GDP dropped 11% in the second quarter after a 1.9% decline in the first three months of 2020, CZSO said on September 1.