GDP in Czech Republic
Czech Republic - GDP
Economy jumps in Q2 on stronger fixed investment and private consumption
GDP grew a multi-year high of 2.3% over the previous quarter in Q2 in seasonally and working-day adjusted terms, according to an advance estimate released by the National Statistics Office (CSO) on 16 August. The result benefited from strong business investment and rising household spending. Moreover, it came in well above the 1.5% growth observed in the first quarter and surprised markets on the upside. In annual terms, GDP grew 4.5% in Q2, which represented a significant acceleration compared to the 3.0% rise observed in Q1.
Economic activity was buoyant in the second quarter, with tight labor market conditions, rising wages and low inflation underpinning consumer sentiment and thus fueling household spending. Moreover, expanding industrial production benefited from a strong car market and the strong PMI readings throughout the quarter showed that the economy had been underpinned by solid domestic and external demand, especially from EU countries, prompting Czech businesses to expand production and hire more staff. In terms of economic sectors, according to the National Statistics Office, the expansion was broad-based, covering both the manufacturing and service sectors.
The positive economic panorama should extend to the remainder of the year, which will translate into an acceleration of the economy compared to 2016 on the back of growing household spending, stronger external demand and a recovery of EU investment funds.
More detailed data will be released on 1 September.
The Czech National Bank expects the economy to expand 2.9% in 2017 and 2.8% in 2018. FocusEconomics Consensus Forecast panelists expect the economy to expand 2.6% in 2017, which is unchanged from the previous month’s projection. For 2018, the panel sees GDP increasing 2.6%.
Czech Republic - GDP Data
|Economic Growth (GDP, annual variation in %)||-0.7||-0.5||2.7||5.4||2.5|
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||1.07||8.93 %||Sep 18|
|Exchange Rate||21.84||0.19 %||Sep 18|
|Stock Market||1,049||-0.20 %||Sep 18|
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Czech Republic: Inflation remains unchanged in August, stays within the Czech National Bank’s target range
September 11, 2017
In August, consumer prices decreased 0.1% from the previous month, contrasting July’s 0.5% increase.
September 1, 2017
The Manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit decreased from July’s reading of 55.3 points to 54.9 points in August, the lowest level so far in 2017.
Czech Republic: Business and consumer confidence spur an improvement in economic sentiment in August
August 24, 2017
The economic sentiment indicator, a composite confidence indicator published by the Czech Statistics Office (CSO), improved in August.
August 16, 2017
GDP grew a multi-year high of 2.3% over the previous quarter in Q2 in seasonally and working-day adjusted terms, according to an advance estimate released by the National Statistics Office (CSO) on 16 August.
August 7, 2017
Industrial production expanded 2.2% year-on-year in June, down from May’s 8.1% expansion.