Economy contracts in Q3

Contrary to expectations the Czech economy contracted by 0.5 percent quarter-on quarter, breaking a brief period of economic revival following the country’s longest recession ever. Year-on-year GDP contracted by 1.6 percent, according to the Czech Statistics Office. Analysts had predicted 0.5 percent growth in the third quarter. The contraction is being attributed to lower output in several key sectors, including energy, construction and agriculture. To help growth, the central bank cut its key interest rate to a record low of 0.05 percent and began using foreign-exchange interventions to weaken the crown.