(Adds details, quote)
PRAGUE, Oct 30 (Reuters) - The Czech economy rebounded by
6.2% in the third quarter from the second, beating expectations,
but the second wave of the coronavirus pandemic has knocked down
forecasts for the rest of the year.
The Czech Statistical Bureau said in a flash estimate on
Friday that despite the rebound, the economy shrank by 5.8%
year-on-year. Analysts in Reuters poll had expected quarterly
growth of 5.0% and a 6.9% decline year-on-year.
The statistics office said the year-on-year drop was driven
by lower capital formation and lower household spending.
Manufacturing, trade and hospitality were hardest hit.
A surge in new COVID-19 infections since late summer, the
fastest in Europe per population size, which have brought in new
round of government restrictions on business and movement.
The curbs will push output back below zero, although unlike
in the spring, few industrial companies -- a large chunk of the
export-oriented economy -- have halted production, as there have
been no significant supply-chain disruptions.
"The economy still has hard times ahead," said Pavel
Sobisek, UniCredit's Czech Republic and Slovakia chief
economist. "In the final quarter, the economy will return to
decline. It can reach 5%-10% quarter-on-quarter, depending on
whether at least some of the current restrictions are lifted
before year-end."
The statistical bureau will publish detailed second-quarter
figures on December 1.
GROSS DOMESTIC PRODUCT (pct change) Q3/20 Q2/20 Market fcast
quarter/quarter 6.2 -8.7 5.0
year/year -5.8 -10.9 -6.9
Details on www.czso.cz/csu/czso/home
** To monitor in real-time Czech economic data releases in the
Eikon app and view historical data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/Economic-Monitor?g=2E
(Reporting by Mirka Krufova and Jan Lopatka; Editing by Robert
Muller)
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