Minus two billion a day
In addition to households, the entire Czech economy also suffers. According to analysts, two billion crowns are lost every day due to the closure of a large part of stores and services. After a short summer slowdown in the slump, they therefore expect further large losses.
“We expect the Czech economy to decline in the fourth quarter at approximately the same rate as in the second quarter,” said Komerční banka analyst František Táborský. In the second quarter, the Czech economy fell by less than eleven percent, which was the most in history.
Losses are not only counted by the owners of the shops they have to close or, for example, the founders of theaters. The production sector also records a significant decline in interest. “The impact on our segment and our business is relatively large. We are 25 percent lower than last year, “said Jan Volšík, director of sales and marketing of the lighting manufacturer Preciosa Lighting. At the same time, however, the company’s situation is not critical. “We have orders,” Volšík assured.
Businesses that depend on stores that are not covered by the exemptions from the general closure of stores have major problems. The company Draci co letadla.cz, which produces flying kites, does not have sales, because its products were sold in stalls and they can now only sell food within farmers’ markets. In the autumn, the interest in dragons is usually greatest. “Due to the measures that are taking place, our season has shortened by more than a third,” pointed out the sales representative of the flying dragons Petr Doležal. The company therefore fired, leaving only two seamstresses in the workshop.
The recovery will not be significantly supported by household consumption either. Wages are estimated to be growing more slowly than inflation. While last year earnings rose by seven percent, this year it is expected to be two and a half percent. And similar numbers are expected next year.
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