According to a preliminary estimate by The Czech Statistical Office, the gross domestic product decreased in the Q1 2020 by 3.6%, quarter-on-quarter, and by 2.2%, year-on-year.
The results of the Czech economy in the first three months of 2020 were significantly influenced by the global coronavirus pandemic and government restrictive measures related to it.
The gross domestic product (GDP) adjusted for price effects and seasonally adjusted decreased in the Q1 2020, according to the preliminary estimate, by 3.6% compared to the Q4 2019 and compared to the Q1 2019 it decreased by 2.2%.
The negative y-o-y GDP development was caused mainly by a decrease in external demand and by lower capital formation. Increasing expenditure of the general government sector had a positive influence.
The decrease of the gross value added formation was influenced the most by the development in manufacturing and in a group of economic activities of trade, transportation, and accommodation and food service activities.
Employment remained unchanged in the Q1 2020, compared to the previous quarter; when compared to the corresponding quarter of the previous year, it decreased by 0.5%.