Ceska sporitelna warns economy will recover slower than expected
The failure of the Czech Republic to deal effectively with the second wave of the coronavirus pandemic is forcing economists to downgrade its economic prospects for 2020. A new study by economists at Ceska sporitelna put the drop in GDP at more than 8 percent, assuming the new restrictions announced by the government last for a month. In one of the scenarios put forward by the bank, most of the damage to the economy is felt by the services sector. In this case, 2021 and 2022 would see GDP growth of around 4 percent, assuming that the Czech industrial sector isn't hit as hard as it was in the spring. This will depend primarily on the ability of Germany and other European nations to manage the second wave better than the Czech Republic has done. In the less optimistic scenario, industry is harder hit and the economy will be limited to just 2.2 percent growth in 2021.