GDP in Czech Republic

Czech Republic GDP | Economic News & Forecasts

Czech Republic - GDP

Economy jumps in Q1 on the back of resilient household spending and a vibrant external sector

The Czech economy gained considerable steam in the first quarter of 2017, following a not-so-brilliant Q4. Growth in Q1 came on the back of robust private consumption and a strongly supportive external sector. Moreover, the previous quarter’s sharp fall in fixed investment gave way to a strong turnaround on the back of higher EU fund absorption. GDP growth strengthened from 1.9% year-on-year (yoy) in Q4 to 2.9% in the first quarter of this year. On a quarter-on-quarter base, the economy grew 1.3% in Q1, more than triple Q4’s 0.4% expansion.

The Czech economy continues to be supported by robust private consumption, which contributed 1.0 percentage point to growth in Q1. The enduring expansion in private consumption—which grew 2.8% in Q1, marginally down from Q4’s 2.9% increase—has been supported by rising wages and a buoyant labor market. Moreover, investment contracted a milder 0.6% in Q1 after plummeting 6.9% in Q4 due to the lower absorption of aid from the European Structural and Investment Fund. Moreover, government consumption accelerated considerably in Q1, expanding 2.4% after the 0.2% growth recorded in Q4.

Meanwhile, the external sector added 1.7 percentage points to growth. Imports of goods and services accelerated from a 0.5% increase in Q4 to a 3.9% rise in Q1, reflecting stronger demand for investment goods, particularly car parts. Export growth jumped from Q4’s 1.8% to 5.4% in the first quarter of this year, benefiting from a firm recovery in the automotive industry.

The economy is forecast to accelerate this year as a tight labor market prompts further wage growth, underpinning household spending, and stronger external demand supports exports. Nevertheless, a slower-than-expected implementation of EU-financed investment projects could restrain the scope of the expansion.

The Czech National Bank expects the economy to expand 2.9% in 2017 and 2.8% 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

2011  2012  2013  2014  2015  
Economic Growth (GDP, annual variation in %)2.0  -0.7  -0.5  2.7  5.4  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.


Czech Republic GDP Chart

CzechRepublic GDP
Note: Annual variation of gross domestic product (GDP) in %.
Source: Czech Statistical Office and FocusEconomics calculations.

Czech Republic Facts

Bond Yield0.90-5.98 %Jul 26
Exchange Rate22.370.54 %Jul 26
Stock Market1,012-0.32 %Jul 26

Sample Report

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.

Sign Up

Economic News

Search form