Czech economy expected to drop by 7.8 percent this year

The Czech economy is expected to drop by 7.8 percent this year as a result of the coronavirus pandemic, which is significantly more than originally expected. In its latest macroeconomic estimate, the European Commission worsened this year's outlook for the Czech economy by 1.6 percentage points as compared to its May forecast. In 2021 the Czech Republic's gross domestic product should increase by 4.5 percent, but even that is half a point less than the Commission predicted in its spring estimate.

According to the Commission, the decline in the Czech export-oriented economy will be significantly affected by the slowdown in industrial production as well as lower demand in other European countries. The stagnation of the car industry will have a particularly significant impact, Brussels predicts. . The EU economy is expected to fall by a record 8.3 percent this year.