Czech decline in GDP in 4Q will be lower than in 2Q 2020

Published: 25.11.2020 Related countries:  Egypt Egypt

The negative impact of the second lockdown on the economy is still significantly lower than the first one from the turn of March and April 2020.

The negative impact of the second lockdown on the economy is still significantly lower than the first one from the turn of March and April 2020. This stems from an analysis by the Czech National Bank (ČNB) based on data on electricity consumption. In the first week of the first lockdown in March, electricity consumption fell by 0.3% y/y, in the second week by 7%. The bottom was reached in mid-April when the decline was -13.7% y/y. In contrast, in the week beginning November 16, electricity consumption grew by 1.6%. A week earlier it was + 1.5%. As part of GDP growth, the ČNB, therefore, assumes with cautious optimism that the economic downturn in 4Q 2020 will not reach the depth observed in 2Q (-8.7% q/q).

Source: CIA News

Prepared by the team of CzechTrade Cairo