The Czech economy contracted in the first quarter as global coronavirus pandemic weighed on foreign demand and capital formation, preliminary data from the Czech Statistical Office showed Friday.
Gross domestic product fell 2.2 percent on a yearly basis in the first quarter, in contrast to fourth quarter’s 2 percent expansion. Economists had forecast a 2.3 percent annual fall in the first quarter.
On a quarterly basis, GDP dropped 3.6 percent. Economists had a 3.5 percent contraction after expanding 0.5 percent in the fourth quarter.
Data showed that external demand and capital formation provided negative contribution to GDP, while increasing government spending had a positive influence.
Further, data showed that employment remained unchanged in the first quarter from the preceding quarter. Compared to last year, employment was down 0.5 percent.
Today’s figure is more consistent with those forecasts calling for the Czech economy to fall by less than 10 percent this year, economists at ING said. The sequential fall in the second quarter will most likely be in the double-digit range, they noted.
The material has been provided by InstaForex Company – www.instaforex.com
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
