(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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