After 2020, it’s scary to imagine what could happen because of coronavirus in 2021. The Czech economy has been struggling to cope with the coronavirus crisis all year. The state is in debt, and the debts do not disappear anywhere, they only continue to grow. What will coronavirus change in 2021?
The coronavirus pandemic has significantly changed the Czech economy. The sharp decline in the economy is associated with a supply and demand shock associated with the spread of the coronavirus. Analysts say it could have been worse. Many Czech companies have shown a high level of adaptation to the new type of virus. Most of the enterprises were able to completely switch to Internet service with great speed. Such a high level of quality could not fail to be noticed by the European Parliament.
The pandemic has affected everyone. During the coronavirus crisis, some of us have lost part of our income, some have lost all our income, and some have doubled it. The coronavirus crisis has affected everyone in different ways. Because of this, it is difficult to say accurate data on the economic crisis in the country, but what can be said for sure, there is a crisis. The decline in the Czech economy in 2020 ranged from 6% to 7%. The first wave alone deprived the economy of more than 230 billion crowns of added value, while the second wave will probably deprive us of another 200 billion.
For many years the Czech Republic has been the leader in Europe in terms of unemployment. And even in such difficult times, the Czech Republic does not give up its position and remains in the lead.
As in other countries of the world during the pandemic in the Czech Republic there were a number of layoffs and stuff cuts. But as we wrote above, many companies have switched to Internet platforms, thanks to which they were able to save income and jobs. In the Czech Republic, about 80 thousand people lost their jobs in 2020. Unemployment will grow slowly in 2021, despite government support. The number of unemployed may increase to 200 thousand and even approach the 500 thousand mark.
Despite the difficult situation in the labor market, a considerable number of vacancies remain. Some companies are closed, while others, on the contrary, open. Paradoxically, some companies can’t find the employees they need.
The speculation that wages will rise in 2021 is true, but not for everyone. An increase in wages is expected in the public sector, which is independent of economic development. In the business sector, price increases will be more restrained than in the public sector. Growth will be stymied by the need to deal with the challenges that companies have suffered this year. The priority for 2021 is job preservation, as it is much more important than increasing wages.
In 2020, inflation was around 3%. What inflation will the coronavirus lead to in 2021?
Analysts believe inflation will be significantly lower in 2021. This is due to lower energy prices, as well as the end of pressure to increase rent. Slow demand will play a role in inflation and will not create much room for price increases. Inflation is projected to fall below 2% in 2021.
All of us for 2020 realized the importance of “being healthy”. By the end of the previous year, leading vaccine companies had provided the coronavirus vaccine. The Czech Republic received 2 types of vaccines from Pfizer and BioNTech.
The state cannot guarantee that with the advent of a vaccine in the Czech Republic, the pandemic will disappear instantly. People from the risk group will be the first to receive the vaccine: health workers, people over 65 years old. They began to be vaccinated at the end of December 2020 and continue to do so throughout January. From February, the vaccination will begin to be given to elderly people suffering from chronic diseases, such as: diseases of the lungs, heart, severe diabetes, liver and kidney diseases. Next in line should be people working in critical infrastructure such as power plants, the military, police or fire brigades, as well as teachers.
How many vaccines will be available?
The Czech Republic has so far ordered ten million vaccines for less than seven million people. That is about 70% of the population. After a certain time, more vaccines will be bought so that everyone will have enough.
Will vaccination be mandatory?
The vaccine will be available and free to everyone on a voluntary basis. The vaccine is not recommended for children and pregnant women, as well as for those whom the doctor personally forbids.
Will the vaccination be a one-time shot?
To get vaccinated against coronavirus, you need to visit your doctor twice. Most coronavirus vaccines are expected to be vaccinated with two doses at least fourteen days apart.