The Czechia is currently experiencing the second wave of coronavirus. Maybe part of the economy will close again. “If the freezing of the economy was not so widespread and if it lasted a shorter time than then, the economy must expect an additional loss of about 270 billion crowns,” said economist Lukáš Kovanda.
The economy could fall by as much as 14 percent this year. At the same time, it is hoped that the readiness of authorities, companies and institutions is now at a higher level than in March or April, so that their response will be more effective.
“In the black scenario, the loss of the economy from the second wave can significantly exceed even the level of 300 billion. And this is, of course, a loss beyond this year’s existing losses, incurred in connection with the current operation of coronavirus,” Kovanda explained.
In the event of a worse course of the second wave, it is possible that the Czech economy will decline next year as well. For next year, the public budget deficit is expected to be around 255 billion crowns. If the situation really worsened during the second wave, it is possible that the state budget deficit would then be more than 350 billion.
The second wave is not just about tourism and business. A serious second wave would have a much worse impact on the automotive industry. It is one of the most affected in the Czech Republic, and it is also crucial, as it represents about a tenth of the country’s gross domestic product. During the first wave, car production stopped because the Czechs did not buy new ones.
On the contrary, the price of less lucrative properties such as cottages could fall. Their price is currently rising as they provide refuge from the coronavirus pandemic. “Worse real estate will become cheaper, those at better addresses will stagnate in price at best,” added Lukáš Kovanda.
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