Czech economy stuck in recession

Czech economy remains stuck in recession after shrinking a further 1.1 percent in Q1

Associated Press

PRAGUE (AP) -- The Czech economy remains stuck in a deep recession after it shrank a further 1.1 percent during the first quarter of 2013 from the preceding three-month period.

The Statistics Office said Tuesday that economic output was down by 2.2 percent compared with a year earlier, more than analysts had expected.

The Czech economy has contracted continuously since the third quarter of 2011, the longest recession since the split of Czechoslovakia in 1993.

To help, the central bank cut its key interest rate to a record low of 0.05 percent in November, but that has not had a full impact on the economy yet.

The Czech Republic is being hurt by a drop in activity in its major trading partners in Europe, many of which are in the euro currency bloc.

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