GDP in Czech Republic
Czech Republic - GDP
Economy gains some steam in Q4 on the back of a stronger external sector
The Czech economy gained some steam in the final quarter of 2016, following a disappointing Q3. Growth in Q4 was supported by strong private consumption and a more favorable external sector. A sharp fall in fixed investment, however, still weighed on the economy. GDP growth strengthened from Q3’s 1.8% to 1.9% in Q4. Q4’s result overshot market expectations of 1.8% growth and brought full-year 2016 GDP growth to 2.3%, half the 4.6% rate seen in 2015, when the country benefited from an unusually high level of public investment associated with the end of the EU funding cycle.
Growth in the Czech Republic continues to be supported by robust private consumption, which contributed 1.4 percentage points to growth. This, together with the positive contribution from the external sector, offset a sharp deterioration in fixed investment. The enduring expansion in private consumption—which grew 2.9% in Q4, marginally down from Q3’s 3.1% increase—has been supported by rising wages, a strong labor market and still low inflation. On the downside, the impact on investment of the diminished absorption of aid from the European Structural and Investment Fund continued to bite and drove fixed investment to fall 6.1% in Q4, worsening from the already considerable 5.0% drop recorded in the previous quarter. Moreover, government consumption flattened in Q4 after the 1.0% growth recorded in Q3.
Meanwhile, the external sector added 0.9 percentage points to growth. Imports of goods and services decelerated from a 1.7% increase in Q3 to a 0.5% rise in Q4, reflecting weaker demand of foreign goods for domestic investment. Export growth also moderated, but to a lesser extent, decelerating from Q3’s 2.4% to Q4’s 1.9%.
The Czech National Bank expects the economy to expand 2.8% in both 2017 and 2018. FocusEconomics Consensus Forecast panelists expect the economy to expand 2.6% in 2017, which is unchanged from last month’s projection. For 2018, the panel also sees GDP increasing 2.6%.
Czech Republic - GDP Data
|Economic Growth (GDP, annual variation in %)||2.0||-0.8||-0.5||2.0||4.3|
5 years of economic forecasts for more than 30 economic indicators.
Czech Republic GDP Chart
Source: Czech Statistical Office and FocusEconomics calculations.
Czech Republic Facts
|Bond Yield||0.99||-1.79 %||Mar 27|
|Exchange Rate||24.81||-0.78 %||Mar 27|
|Stock Market||979||-0.31 %||Mar 27|
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
March 24, 2017
The economic sentiment indicator published by the Czech Statistics Office (CSO) dropped from February’s 98.0 points to 96.6 points in March, further below the 100-point average.
March 15, 2017
Industrial production in the Czech Republic grew 9.6% year-on-year in January, which followed the slower 2.7% expansion registered in December.
March 9, 2017
In February, Czech consumer prices grew 0.4% from the previous month, slowing from January’s 0.8% rise.
March 3, 2017
The Czech economy gained some steam in the final quarter of 2016, following a disappointing Q3.
March 1, 2017
The Manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit rose from January’s 55.7 to 57.6 in February, marking a multi-year high.