One of the most affluent countries in central and eastern Europe (CEE), the Czech Republic has ridden out the economic impact of the Covid-19 pandemic reasonably well, despite suffering one of the world’s highest death tolls per head. The government and central bank were able to step in rapidly, though their efforts to support incomes and jobs have attracted criticism in some quarters.
The relatively high share of industry in gross domestic product (GDP) led to a shallower recession than might have been the case, and the country can now look forward to a robust recovery. The Czech economy contracted by 5.6% in 2020, slightly less than the EU average of 6.1%, and is expected to rebound by 3.4% this year, picking up pace to 4.7% in 2021, according to forecasts by Komerční Banka (KB).
