Left Menu
Development News Edition

Czech factories boost economy, limiting damage from second pandemic wave

The Czech economy rebounded more than expected in the third quarter and November factory sentiment reached its highest since August 2018, data showed on Tuesday, giving hope that manufacturing can lead a recovery from the coronavirus pandemic. Output rose by 6.9% on a quarterly basis in the third quarter, beating a flash estimate of 6.2%, statistics office data showed.

Reuters | Updated: 01-12-2020 15:53 IST | Created: 01-12-2020 15:53 IST
Czech factories boost economy, limiting damage from second pandemic wave

The Czech economy rebounded more than expected in the third quarter and November factory sentiment reached its highest since August 2018, data showed on Tuesday, giving hope that manufacturing can lead a recovery from the coronavirus pandemic.

Output rose by 6.9% on a quarterly basis in the third quarter, beating a flash estimate of 6.2%, statistics office data showed. Gross domestic product fell by 5.0% year-on-year, a shallower decline than first expected. Consumption picked up in the quarter from the previous three months and exports shot up 26%.

The third-quarter recovery helped balance some of the losses sustained from a national lockdown in the spring. The improvement in November business sentiment could help overcome the second pandemic wave, which struck the central European country harder than the first. The government is allowing the limited re-opening of retail outlets and restaurants on Thursday after nearly two months, as badly hurt retail businesses prepare for the Christmas holiday season.

Factories have been less hurt than in the spring, when many shut down amid supply chain and demand disruptions, leading to a record economic contraction in the second quarter. The sector has rebounded since, with the Markit Purchasing Managers' Index (PMI) rising for the seventh consecutive month to 53.9 in November from 51.9 in October. New orders increased at the fastest pace since July 2018.

"The November indicators confirm the high resilience of domestic industry even in this difficult pandemic situation," said Jana Steckerova, an economist with Komercni Banka, said. "An important role is played by euro zone industry, especially in Germany, where the PMI indices also reach high levels. That benefits export-oriented Czech industrial firms."

The Czech crown posted its biggest monthly gain since 2009 in November amid a global rally on vaccine hopes and, locally, the drop in coronavirus infections in the country. The central bank, which has held interest rates steady since May, forecasts a full-year 7.2% contraction of the economy.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

Biden extends Europe, Brazil travel restrictions, adds South Africa

U.S. President Joe Biden signed an order on Monday barring most non-U.S. citizens who have recently been in South Africa from entering the United States, effective Saturday. Bidens order also reimposes an entry ban, set to expire on Tuesday...

Germany unable to adhere to debt limits for years - Merkel aide in Handelsblatt

Germany faces huge fiscal challenges following the COVID-19 pandemic and wont be able to stick to its strict debt limits for years, Chancellor Angela Merkels chief of staff was quoted as saying on Monday.The debt brake cannot be adhered to ...

U.S. to 'make good' on climate finance pledges, Kerry tells leaders

The United States will make good on financial commitments to developing countries struggling with climate change, top U.S. climate envoy John Kerry told a summit of world leaders on Monday. Kerry said the United States was proud to be back ...

Greta Thunberg calls for urgent action to address climate, ecological crisis

Climate and environmental activist Greta Thunberg on Monday asked the world to remember the promises it made to safeguard the environment in the wake of the crisis situation that has been created and inflicted on the present generation beca...

Give Feedback