Czech economy lost 5.6%, government spending softened decline

Published: 03.03.2021 Related countries:  Czech Republic Czech Republic

Weak household consumption contributed most to the decline of Czech economy.

The decline in GDP in 2020 was 5.6%. This stems from a more accurate estimate by the Czech Statistical Office. In Q4 2020 alone, the economy strengthened by 0.6% q/q. Year-on-year, the economy’s performance fell by 4.7%. The main factors in the year-on-year decrease were household consumption expenditures (influence -1.9 pp) and capital formation expenditures (-3.1 pp). Expenditures of government institutions made a positive contribution (+0.6 pp). GVA decreased by 5.5% in 2020. Household final consumption expenditure fell by 5.2%. Gross fixed capital formation in 2020 was 8.5% lower than in 2019. Investment in transport equipment and machinery declined. Total employment weakened by 1.5% to 5.35 million people

Source: ČIA NEWS, March 3rd, 2021,
Compiled by the team of CzechTrade office in Riga.