The main cause of the drop are the anti-epidemic measures which were first taken in Q2 and then again in Q4. Amongst the most negatively affected sectors belong commerce, transport, accommodation and hospitality (-11,8%) or processing industry. One of the few segments experiencing a growth were information and telecommunication services (1,6%).
In the second half of 2020 the situation got relatively better especially in industry which has also boosted the export and balance of trade. The subsequent reintroduction of measures didn’t have a significant impact on industry but they again caused the decline of services and commerce. Despite the reintroduction of restrictions in the Q4 the year-on-year GDP drop totalled at 4,7%.
Source: ČSÚ, www.cianews.cz/en