EESC CORNER: Economy might be harder hit than predicted by the European Commission forecast

The European Commission Forecast projects that the Real Gross Domestic Product of the Czech Republic will contract by 6.9% in 2020 before growing 3.1% in 2021 and 4.5% in 2022. The EESC Employers’ Group agrees with the European Commission’s Autumn 2020 Economic Forecast, which makes it clear that Europe’s economic rebound has been interrupted by the resurgence of the pandemic.

The second wave of the COVID-19 pandemic is leading to continuing high levels of uncertainty and downside risks, such as a rise in unemployment, growing deficits and public debt, reduced investment activity and consumer spending and a labour market downturn in the European economy.

The EESC Employers’ Group believes that the current high level of uncertainty could make the Autumn Economic Forecast less accurate and that the economy might be even harder hit than predicted by the European Commission.

The second wave of the COVID-19 pandemic struck the Czech Republic very hard and has resulted in difficult economic situation for many Czech companies, especially for service providers. Unfortunately, the opinion of the EESC seems to be right and the European economy will suffer more than was expected.

David Sventek

EESC Member, Group I – Employers