GDP drops 5,6% in 2020 and 4,7% in the 4th quarter

Published: 23.03.2021 Related countries:  United Kingdom United Kingdom

Year 2020 was the worst year in the Czech Republic since its establishment in 1993 recording the biggest GDP drop.

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