Annual GDP growth will strengthen to 6% in the short term in 2Q 2021, but this will be mainly due to a low comparative base.
This is expected by the Czech National Bank (ČNB) with the view that the domestic economy will breathe into robust and sustained growth only with a more significant lifting of anti-epidemic measures during 2H 2021.
According to ČNB, exports of Czech companies will return to dynamic growth thanks to the resolution of current problems in industry and international trade, as well as the gradual recovery of foreign demand.
Overall, the GDP dynamic is projected to slightly exceed 1% in 2021 and then accelerate above 4% in 2022.
Industrial production in the Czech Republic grew by 14.9% y/y in real terms in March 2021. The value of new orders increased by 23.0% y/y.
The high annual growth in production was recorded mainly in sectors that have been hit by a complete closure since mid-March last year and which are also very closely linked.
That is the production of cars, where production increased by 47% y/y, the production of rubber and plastic products with a growth of 22% and the production of electrical equipment.