PRAG (dpa-AFX) - The Czech Republic's economy shrank more than expected in the second quarter, largely due to a slump in external demand as global trade was hurt severely by the coronavirus pandemic, latest data from the Czech Statistical Office showed on Tuesday.
Price and seasonally adjusted gross domestic product decreased a record 8.7 percent, which was more severe a fall than the 8.4 percent decline estimated initially.
The first quarter slump was revised to 3.3 percent from 3.4 percent.
Two consecutive quarters of GDP decline qualify as a technical recession, which is a first in the country since 2009.
Total consumption decreased 4.8 percent quarter-on-quarter with a 6.3 percent fall in household spending. State spending decreased 1.5 percent.
Gross fixed capital formation grew 0.9 percent, largely led by investments in the construction sector, while spending on machinery and transport equipment decreased sharply.
On a year-on-year basis, GDP dropped 11 percent in the second quarter after a 1.9 percent decline in the first three months of 2020.
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